The property market is back on track. That’s according to the latest Housing Index data from Nationwide.
The Building Society reported that property prices increased by 0.5% between August and September. It brought the cost of the average property in the UK to £271,995. The latest increase was in sharp contrast to August’s figure, where prices fell by one per cent.
Optimism for future property sales
Nationwide chief economist Robert Gardner provided scope for further optimism when he declared he was confident the Bank of England would lower its base rate in the coming months, making mortgages more affordable for house buyers. Earnings, he said, were also rising and unemployment remained low.
The current Bank of England base rate sits at 4%, but many analysts are also confident it could fall to 3.75%. This is despite inflation remaining stubbornly high at 3.8% this summer.
It’s believed the biggest impact on the UK property market however, will be Rachel Reeves’ budget at the end of November. She has already suggested she may make those selling homes of at least £500,000 pay an additional tax. This is believed to be part of a plan to alter stamp duty and council tax payments.
Many regions saw property price increases
London house sellers found the value of their property increased by 0.6% over the summer months. The rise was 0.3% in the south east of England.
In Northern Ireland the cost of property grew 9.6% over the summer compared to the same time last year. The figure for Wales was 3%, with 2.9% for Scotland.
Staying with regional data, property is selling fastest in Scotland, at 33 days. It is taking 54 days in the North East of England and 70 days in both London and Wales, according to figures from property portal Rightmove.
