Buses go past the Bank of England building, in London, Britain.  (Reuters Photo)

LONDON- Britain’s housing market recovered momentum in September, as the Bank of England’s first interest rate cut in more than three years and greater political certainty after July 4’s election boosted activity, property website Rightmove said on Monday.

Rightmove said average asking prices for homes increased by 0.8 percent after a sharp 1.5 percent  drop in August. September’s rise was double the average for the time of year in the series and the biggest for the month since 2016.

Compared with a year earlier, asking prices were 1.2 percent higher at 370,759 pounds ($487,140).

Tim Bannister, Rightmove’s director of property science, said the housing market was invigorated by a new government and the first rate cut from the BoE since 2020.

But Rightmove said there were “still uncertainties ahead, including the timing of a second Bank Rate cut, and which segments of the market could be affected by announcements in October’s Autumn Statement.”

The BoE is expected to hold interest rate at 5 percent on Sept. 19 – although markets last week saw a 30 percent chance of an early cut – and cooling wage growth is likely to keep the central bank on track to cut at least once more by the end of the year.