According to Nationwide, in the month of August, the average house gained 2.4% in value, with a cost of £265,375.
People were spending their lockup savings during that period since borrowing rates had not risen to their present highs and COVID-19 restrictions were starting to ease.
According to Nationwide, the yearly growth and corresponding rise in purchasing demand are nonetheless “subdued by historic standards”.
The lender continued, “the price increase demonstrates resilience in the sector when the broader economic conditions of high interest rates and house prices costing many multiples of wages are considered.”
Robert Gardner, chief economist at Nationwide, stated that “if the economy keeps expanding as we anticipate, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”
“As inflation moderates and lenders lower their rates, the UK housing market is in a better place than it was last summer,” stated Tom Bill, head of UK residential research at estate agency Knight Frank.
The decline in mortgage rates this autumn is anticipated by financial markets, which should support transactions and moderate single-digit price rises.
