New peak for UK property prices
First published on KensingtonHouse.com on 1 October 2024. Figures, forecasts and quotations reflect that date and have not been updated. Read it as a record of the market at the time, not as a current view.
For later official context: the UK House Price Index for July 2026, published 16 September 2026, put the average London price at £550,037, 3.3% lower than a year earlier, while England rose 1.1% and the UK 1.4%. HM Land Registry, September 2026
UK house prices rose by 0.7% in September, boosting the annual growth rate from 2.4% in August to 3.2% in September—the fastest pace recorded since November 2022 (4.4%). Average prices are now just 2% below the all-time highs of summer 2022.
“Income growth has outpaced house price growth, improving affordability for prospective buyers”
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, highlighted the role of income growth and easing borrowing costs. “Income growth has continued to outstrip house price growth in recent months while borrowing costs have edged lower amid expectations that the Bank of England will continue to lower interest rates in the coming quarters,” he said. These factors, Gardner noted, have helped improve affordability for prospective buyers, leading to a modest rise in activity and house prices, though both remain subdued by historic standards.
Looking ahead, Kensington House predicts further gains in the property market. With UK house prices expected to climb in Q4 2024, the company anticipates the market reaching new peaks next year.
Editorial note: the company name has been updated to Kensington House and a closing call to action for investors has been removed.
Original publication: kensingtonhouse.com, 1 October 2024. The organisations quoted are named in the text; their figures are reported as they stood on the publication date.