The annual rate of UK house price growth crept up slightly to 2.2% in September, according to the latest Nationwide House Price Index (HPI).

This was up from the 2.1% that the building society reported in the year to August, to take the latest average price of a UK home to £271,995 in September.

Nationwide also reported that house prices increased by 0.5% month-on-month in September, after taking account of seasonal effects.

Based on Bank of England data, the number of mortgages approved for house purchase per month has been hovering at around 65,000 cases for the last three months, which Nationwide chief economist, Robert Gardner, highlighted is close to the pre-pandemic average – despite the higher interest rate environment.

“Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive,” 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 bank rate is lowered in the coming quarters as we, and most other analysts, expect.

“Providing the broader economic recovery is maintained, housing market activity is likely to strengthen gradually in the quarters ahead.”

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