UK house prices are climbing at their fastest pace in two years, rising 0.7% in September and 3.2% year-on-year, driven by falling mortgage rates and increased buyer interest after the Bank of England cut rates this summer. The average house price now stands at £266,094, just 2% below the 2022 peak. Strong income growth and improved affordability have boosted activity, though the market remains regionally divided, with Northern Ireland leading in price gains. Economists predict further mortgage rate drops could fuel even faster growth into 2024.