According to the most recent statistics, buyer demand is driving up house prices, which are climbing at their quickest rate in over two years.

Leading lender Nationwide reported that the average UK property price increased by 0.7% in August and by 3.2% in September compared to 2.4 in August. Since November 2022, that was the quickest annual rate recorded.

The average cost of the house is currently £266,094, which is only 2% less than the all-time highs set in the summer of 2022, shortly before Liz Truss's terrible mini-Budget.

The increase in home prices comes after the Bank of England lowered interest rates for the first time in four years in August, bringing down the main lending rate from 5.25% to 5%.Robert Gardner, Nationwide’s Chief Economist, said: “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. These trends have helped to improve affordability for prospective buyers and underpinned a modest increase in activity and house prices, though both remain subdued by historic standards.”

London lagged behind the national rate, as it has done fairly consistently since the pandemic, with 2% annual growth.

Terraced houses saw the biggest rises nationally, with prices up 3.5% followed by semi-detached homes and flats with increases of 2.8% and 2.7% respectively, whilst detached houses saw more modest growth of 1.7%.

But Gardner added: “If we look over the longer term however, detached homes have continued to have a slight edge over other property types, most likely due to the ‘race for space’ seen during the pandemic. Indeed, since Q1 2020, the price of an average detached property increased by nearly 26%, while flats have only risen by around 15% over the same period.”

Guy Gittins, CEO of Foxtons, stated: "There's no doubt that buyer activity has strengthened following the interest rate cut seen in August, and further positive house price growth in September suggests that market momentum has continued to build."

"We believe that the market will continue to grow as we approach autumn, which is typically a very active time for the UK real estate market. We're already seeing an increase in enquiries, offers, and closed sales, all of which are encouraging signs for the rest of the year and beyond."