UK house prices suggest London market heating up

British house price growth has accelerated and there were signs the market in London is heating up again, mortgage lender Nationwide said, adding to evidence the housing market has regained momentum.

House prices in the UK rose 0.5% month-on-month in September, slightly more than expected in a Reuters poll and up from 0.4% in August. On an annual basis, they rose 3.8%, from 3.2% last month.

The figures are the latest to show Britain’s housing market is picking up after a dip last year. Official data this week showed British mortgage lending increased last month by the greatest amount since 2008.