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.
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December 26, 2025 08:42 ET Third quarter economic growth data from some major economies including the U.S. were the main news in this holiday shortened week. GDP growth and industrial production data from the U.S. helped to boost morale, while the consumer confidence survey results were less upbeat. In Europe, the quarterly economic growth data from the U.K. drew attention, while the minutes of the Australian central bank’s latest policy session was in focus in Asia.