House prices are heading upwards, with the fastest growth in almost two years. Could this be the comeback the property market has been waiting for?

Nationwide’s latest figures reveal that house prices shot up by 0.7% in September alone. This impressive jump means prices are now rising annually at a rate of 3.2% – that’s the quickest pace we’ve seen since November 2022.

Well, while we’re not quite back to the heady heights of summer 2022, average house prices are now just 2% shy of those record-breaking figures.

North and South: A Tale of Two Markets

It seems the North is winning the property race, with prices in Northern England surging ahead of those down South.

• Northern England: Enjoying a healthy 3.1% yearly rise, with the North West leading the charge at 5%.
• Southern England: Trailing behind with a more modest 1.3% increase. Even London, usually a property powerhouse, only managed a 2% rise.

But before you pack your bags, it’s worth noting that London still boasts the highest overall house prices in the UK.

Property Types: Who Are the Winners and Losers?

Fancy a terraced house? They’ve seen the biggest price jump over the last year, with a 3.5% increase. Semi-detached homes and flats are hot on their heels at 2.8% and 2.7% respectively.

Detached houses, on the other hand, are lagging behind with a 1.7% rise. However, don’t write them off just yet! Since the start of 2020, they’ve actually seen the biggest overall gains (nearly 26%), proving that the pandemic-driven desire for more space hasn’t entirely gone away.

What’s Fueling This Surge?

Experts believe a “perfect storm” of factors is driving this upward trend:

• Lower interest rates: Making mortgages more affordable and tempting buyers back into the market.
• Pent-up demand: After a period of uncertainty, many buyers are raring to go.
• Competitive mortgages: With lenders offering tempting sub-4% deals, borrowing is looking increasingly attractive.

What’s Next for the Property Market?

Industry insiders are cautiously optimistic. While the Autumn Budget and potential interest rate changes from the Bank of England could shake things up, many predict a busy end to the year, with buyers and sellers eager to make the most of current conditions.

So, whether you’re a seasoned homeowner or a first-time buyer, it’s a fascinating time to keep a close eye on the UK property market!