Annual House Price Growth At A Two-Year High | will never contact you by phone to sell you any financial product. Any calls like this are not from Moneyfacts. Emails sent by will always be from Be Scamsmart.

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Derin Clark

Derin Clark

Online Reporter
Published: 30/09/2020

House prices have seen an annual increase of 5%, the highest growth since September 2016, with the average house price now standing at £226,129, the latest Nationwide House Price Index figures reveal.

The figures, which were released today, also reveal that month-on-month prices have increased by 0.9%. Commenting on reasons for the increase, Robert Gardner, chief economist at Nationwide, said: “The rebound reflects a number of factors. Pent-up demand is coming through, with decisions taken to move before lockdown now progressing. The stamp duty holiday is adding to momentum by bringing purchases forward. Behavioural shifts may also be boosting activity as people reassess their housing needs and preferences as a result of life in lockdown.”

More mortgage approvals

Along with demand for new houses, mortgage approvals have also increased. As Gardner explained: “Mortgage approvals for house purchase rose from c66,000 in July to almost 85,000 in August - the highest since 2007, well above the monthly average of 66,000 prevailing in 2019.”

With the majority of 90% loan-to-value and above mortgage deals being withdrawn from the market, along with the majority of first-time buyers unlikely to benefit from the increase in the stamp duty threshold, it is likely that home movers and those looking to invest in a buy-to-let (BTL) property are fuelling the market at the moment.

The best moving home mortgage rates

Those looking to move home can not only benefit from the stamp duty holiday, but also from the fact that moving home mortgage deals are still highly competitive. For example in the two year fixed moving home chart Virgin Money is offering the lowest rate of 1.24% (3.7% APRC) fixed until 1 January 2023 at a 65% LTV. Meanwhile, in the five year fixed moving home chart, home movers can get a rate from as low as 1.42%. Barclays Mortgage offers 1.42% (2.8% APRC) fixed until 31 October 2025 at a 60% LTV.

The best BTL mortgage rates

Although, as we reported earlier this week, BTL mortgage rates have risen recently, there are still some highly competitive deals in the charts. The lowest two year fixed BTL deal available comes from The Mortgage Works which offers 1.19% (4.5% APRC) fixed until 30 November 2022 at a 65% LTV. In the five year fixed BTL chart, Birmingham Midshires Solutions offers the lowest rate of 1.62% (3.5% APRC) fixed until 31 December 2025 at a 60% LTV.


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