A new report on the housing market has revealed that house prices rose slightly in September while London experienced yet another decline. Despite higher interest rates, or perhaps due to the latest increase in the Bank of England’s Monetary Policy Committee (MPC), hopeful home buyers have shown strong interest in the close of the third quarter of the year. Lenders are still offering low interest rate deals on mortgages as some have yet to push the increase by the MPC onto borrowers. Rather than waiting till the rush before another increase, borrowers are seeking out the low rates currently available.

The UK average house price according to Nationwide rose by 0.3% to £214,922 in September. The Capital which for years influenced the average house price for the UK positively is now doing the opposite. London house prices feel for the fifth consecutive quarter annually by 0.7% to an average of £468,544. Had London remained strong in growth, the overall rate would have shown stronger growth. However, experts believe a natural correction to the high house prices in London is needed.

The annual growth of the housing market in September was reported at 2% with an expectation of a possible year end growth to 3%.

Robert Gardner, Nationwide’s chief economist, remarked, “Much will depend on how broader economic conditions evolve, especially in the labour market, but also with respect to interest rates.

“Subdued economic activity and ongoing pressure on household budgets is likely to continue to exert a modest drag on housing market activity and house price growth this year, though borrowing costs are likely to remain low.”

Homeowners are expected to remain a strong sector of the lending market as they seek to secure a low interest rate remortgage. Lenders are likely to continue to be competitive for customers and that will fare well for both home buyers and homeowners seeking a great deal before the end of the year.