UK Nationwide House Price Growth Rises

(RTTNews) - UK house prices growth accelerated in September amid easing borrowing costs, data from the mortgage lender Nationwide Building Society showed Wednesday.

House prices logged an annual growth of 2.2 percent in September, slightly faster than the prior month's 2.1 percent rise. The annual increase was forecast to ease to 1.8 percent.

On a monthly basis, house prices rebounded 0.5 percent after a 0.1 percent drop in August. This was also faster than economists' forecast of 0.2 percent.

The Bank of England had reduced its key rate five times since August 2024. The current 4.00 percent bank rate is the lowest since early 2023.

"Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive," Nationwide Chief Economist Robert Gardner said.

Gardner said 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 the BoE lower key interest rate in the coming quarters as expected.

"Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead," said Gardner.

Data showed that house prices climbed 0.4 percent in the third quarter from the preceding quarter. Compared to the last year, house prices increased 2.3 percent.