UK house prices tick higher in September - Nationwide

(Sharecast News) - House prices nudged higher in September, industry research showed on Wednesday, as the market continued to shake off wider economic uncertainty. According to the latest data from Nationwide, the average house price now stands at £271,995, having risen 0.5% month-on-month, reversing August's 0.1% dip. Consensus had been for a 0.2% uplift.

Year-on-year, house prices rose by 2.2%, little changed on August's 2.1% but ahead of forecasts for a 1.8% rise.

Robert Gardner, Nationwide's chief economist, said: "Despite ongoing uncertainties in the global economy, underlying conditions for potential home buyers in the UK remain supportive.

"Unemployment is low, earnings are rising at a healthy pace, household balance sheets are strong and borrowing cost are likely to moderate a little further if Bank Rate is lowered in the coming quarters as we, and most other analysts, expect."

The Bank of England has adopted a cautious approach to monetary policy, as it tackles persistent above-target inflation. So far it has cut rates three times this year, to 4%.

Most analysts agree that the current rate-cutting cycle has not yet ended, but are divided as to when the next reduction will come.

Gardner added: "Providing the broader economic recovery is maintained, housing market is likely to strengthen gradually in the quarters ahead."