UK housing prices rising at fastest level in two years [Video]

UK housing prices are rising at the fastest pace for nearly two years as falling interest rates lure more borrowers to the market, writes John-Paul Ford Rojas.

The value of the average home was 3.2pc higher in September than in the same month last year, figures from lender Nationwide showed.

It was the strongest pace of growth since November 2022.

Separate figures from the Bank of England revealed that 64,900 mortgages were approved by lenders in August, the highest level in two years.

The market has been supported by the Bank’s decision to cut interest rates from 5.25pc to 5pc over the summer – and expectations that it will keep cutting.

Those expectations have prompted lenders to slash the rates they are offering.

At the same time, robust wage increases are bolstering household finances.

Ashley Webb, UK economist at Capital Economics, said: “There are clear signs that the previous falls in mortgage rates are supporting demand.”

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