House price growth accelerates in September

UK house prices increased by 0.9% in September and were 5.0% higher than September 2012 according to Nationwide.

The typical UK home is now worth £172,127 with southern regions of England, especially London, continuing to record the strongest rates of house price growth.

Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said:

“UK house price growth accelerated in September, rising by 0.9% over the month. As a result, the annual rate of house price growth rose to 5%, the strongest pace since July 2010. There are also signs that the pickup is becoming increasingly broad-based. For the first time since 2007, all thirteen UK regions experienced annual house price growth in the third quarter of 2013. However, the southern regions of England continued to see the strongest rates of growth – especially London, where the annual rate of growth reached double digits in the three months to September.

“The gap between house prices in the North and the South of England reached a new high in Q3, rising above £100,000 for the first time. The typical property price in the South of England is now 74% above its Northern equivalent.

“The acceleration in house price growth from the subdued pace prevailing throughout 2011 and 2012 has been surprisingly quick, though house prices are still some way below their previous peaks in most parts of the country. Overall, UK house prices are still around 8% below their 2007 highs. However, there is still significant regional variation, with prices in Scotland, Wales and the North of England around 12% to 14% below their previous peaks, while in many southern regions prices are 5% to 7% lower. Only in London are prices at an all-time high, 8% above the previous peak.”

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