This uptick in mortgage offerings follows the Bank of England's recent interest rate cut from 5.25% to 5%, the first reduction in over four years.

In September 2024, UK house prices increased by 3.2% compared to the same month last year, marking the fastest annual growth rate in nearly two years.

The average cost of a home in the UK now stands at £266,094, which is just 2% below the all-time high recorded in summer 2022.

Monthly house prices rose by 0.7% from August to September, exceeding expectations and indicating a recovery in the housing market.

Banks, including Nationwide and Halifax, are now offering five-year fixed mortgage rates below 4%, a first since early 2024, as competition among lenders intensifies.

Analysts suggest that further declines in swap rates could lead to lower mortgage rates, potentially accelerating house price growth in the coming year.

Despite the recent increase in prices and activity, the housing market remains subdued compared to historical levels.

Robert Gardner, chief economist at Nationwide, noted that income growth is outpacing house price growth, which is improving affordability for buyers.

The increase in buyer activity is supported by more enquiries and offers submitted, indicating a positive outlook for the UK property market.

Regional disparities are evident, with house prices in the north of England growing by 3.1% year-on-year, compared to just 1.3% in the south.

Northern Ireland led the way with the highest annual growth in property values, experiencing an impressive 8.6% increase.

While interest rates are expected to fall, the cost of deposits and monthly repayments still pose significant challenges for first-time buyers.