This article is from the source 'guardian' and was first published or seen on . The next check for changes will be

You can find the current article at its original source at https://www.theguardian.com/business/2025/oct/01/uk-house-prices-return-to-growth-amid-broad-stability-in-market

The article has changed 2 times. There is an RSS feed of changes available.

Version 0 Version 1
UK house prices return to growth amid ‘broad stability’ in market UK house prices return to growth amid ‘broad stability’ in market
(about 1 hour later)
Nationwide says prices rose by 0.5% in September after August drop, lifting average price of property to £271,995Nationwide says prices rose by 0.5% in September after August drop, lifting average price of property to £271,995
Business live – latest newsBusiness live – latest news
The UK property market returned to growth in September after a summer lull, with house prices rising 0.5% compared with the previous month.The UK property market returned to growth in September after a summer lull, with house prices rising 0.5% compared with the previous month.
The average amount paid for a home ticked up to £271,995, according to Nationwide Building Society, recovering from a 0.1% decline in August, while the annual rate of house price growth accelerated slightly from 2.1% to 2.2%.The average amount paid for a home ticked up to £271,995, according to Nationwide Building Society, recovering from a 0.1% decline in August, while the annual rate of house price growth accelerated slightly from 2.1% to 2.2%.
Robert Gardner, the chief economist at the building society, said there was now “broad stability” in the housing market.Robert Gardner, the chief economist at the building society, said there was now “broad stability” in the housing market.
“The number of mortgages approved for house purchase have been hovering at about 65,000 cases per month, close to the pre-pandemic average,” he said.“The number of mortgages approved for house purchase have been hovering at about 65,000 cases per month, close to the pre-pandemic average,” he said.
“Despite ongoing uncertainties in the global economy, underlying conditions for potential homebuyers in the UK remain supportive.“Despite ongoing uncertainties in the global economy, underlying conditions for potential homebuyers in the UK remain supportive.
“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.”“Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing costs are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect.”
The Bank of England voted to leave interest rates on hold at 4% last month. Rates have fallen five times since last summer but the Bank’s governor, Andrew Bailey, has urged caution given persistent inflation, which held steady at 3.8% in August.The Bank of England voted to leave interest rates on hold at 4% last month. Rates have fallen five times since last summer but the Bank’s governor, Andrew Bailey, has urged caution given persistent inflation, which held steady at 3.8% in August.
Amy Reynolds of the estate agency Antony Roberts said next month’s budget was also affecting buyer confidence.Amy Reynolds of the estate agency Antony Roberts said next month’s budget was also affecting buyer confidence.
“With the summer market now out of the way, which was surprisingly resilient given continued caution demonstrated by buyers, many are now waiting for what the budget might bring,” she said.“With the summer market now out of the way, which was surprisingly resilient given continued caution demonstrated by buyers, many are now waiting for what the budget might bring,” she said.
Rachel Reeves will reveal her second budget on 26 November, as speculation over tax increases continues. Over the summer the Treasury considered a new tax on the sale of homes worth more than £500,000, as part of a possible plan to overhaul stamp duty and council tax.
Separately on Wednesday, the FTSE 250 housebuilder Taylor Wimpey told its investors that its net private sales rate had slowed to 0.65 per outlet per week in the nine weeks ending on 28 September, down from 0.7 in the same period last year, adding that the “impact of the delayed UK budget” had affected “short-term customer confidence”.
Sign up to Business TodaySign up to Business Today
Get set for the working day – we'll point you to all the business news and analysis you need every morningGet set for the working day – we'll point you to all the business news and analysis you need every morning
after newsletter promotionafter newsletter promotion
Rachel Reeves will reveal her second budget on 26 November, as speculation over tax increases continues. Over the summer the Treasury considered a new tax on the sale of homes worth more than £500,000, as part of a possible plan to overhaul stamp duty and council tax. Jonathan Hopper of the buying agent Garrington Property Finders added that while the average UK house price had inched back to growth, the property market was still “in soft landing territory”.
Separately on Wednesday, the FTSE 250 housebuilder Taylor Wimpey told its investors that its net private sales rate had slowed to 0.65 per outlet per week in the nine weeks ending on 28 September, down from 0.7 in the same period last year, adding that the “impact of the delayed UK budget” had affected “short-term customer confidence”. He said: “The pace of price rises has slowed in most regions, with prices almost stagnant in parts of southern England.”
In London, house prices nudged up by 0.6% in the third quarter of the year compared with the previous three months, to an average of £527,694, Nationwide found. In the outer south-east, the average price rose by 0.3% to £337,201. Across all of England, annual house price growth slowed to 1.6%, down from 2.5% in the second quarter of the year.
“Even in highly desirable areas, sellers are having to price their homes keenly just to grab buyers’ attention, and many are offering discounts or sweetening the price in other ways – perhaps by making a contribution to the buyer’s stamp duty costs – to get a deal done,” Hopper said.
Northern Ireland was again the strongest performer in the UK, where annual house price growth hit 9.6% in the third quarter of the year. That was followed by Wales at 3% and Scotland at 2.9%.