Business

Average UK house prices break through £225,000 barrier for first time

House prices in Northern Ireland rose again to an average of £146,152 in September, according to Nationwide
House prices in Northern Ireland rose again to an average of £146,152 in September, according to Nationwide House prices in Northern Ireland rose again to an average of £146,152 in September, according to Nationwide

THE average UK house price has hit a new record in September, breaking through the £225,000 barrier for the first time, according Nationwide Building Society.

Its latest index reveals that the average UK house price was £226,129 in September - the first time it has been above the £225,000 mark - after rising from £224,123 in August.

Prices increased by 5 per cent annually in September, marking the highest growth rate in four years, and they rose by 0.9 per cent month-on-month.

In Northern Ireland, the average price across the third quarter is £146,152, according to Nationwide data, which is up 1.5 per cent over the year.

Robert Gardner, Nationwide's chief economist, said: "House prices increased by 0.9 per cent month-on-month in September, after taking account of seasonal effects, following a 2 per cent rise in August.

"As a result, there was a further pick up in annual house price growth from 3.7 per cent in August to 5 per cent in September - the highest level since September 2016.

"Housing market activity has recovered strongly in recent months. Mortgage approvals for house purchase rose from (around) 66,000 in July to almost 85,000 in August - the highest since 2007, well above the monthly average of 66,000 prevailing in 2019."

He said the rebound reflects several factors.

Mr Gardner said: "Pent-up demand is coming through, with decisions taken to move before lockdown now progressing.

"The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown."

However, research by Nationwide also indicates that some people are putting off moving home, particularly younger people.

This may reflect concerns about employment prospects, Mr Gardner said.

He continued: "Indeed, most forecasters expect labour market conditions to weaken significantly in the quarters ahead as tighter restrictions dampen economic activity and the furlough scheme winds down.

"While the recently announced jobs support scheme will provide some assistance, it is not as comprehensive as the furlough scheme it replaces."

Looking across the UK, Nationwide said most regions saw a slight pick-up in annual price growth in the third quarter of this year (between July and September).