LONDON, Sept 16 Reuters Britain39;s housing market recovered momentum in September, as the Bank of England39;s first interest rate cut in more than three years and greater political certainty after July 439;s election boosted activity, property website Rightmove said on Monday.

Rightmove said average asking prices for homes increased by 0.8 after a sharp 1.5 drop in August. September39;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 higher at 370,759 pounds 487,140.

Tim Bannister, Rightmove39;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 October39;s Autumn Statement.

The BoE is expected to hold interest rate at 5 on Sept. 19 although markets last week saw a 30 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.

Prime Minister Keir Starmer39;s Labour government has promised to reform Britain39;s planning system and has set mandatory targets to speed up housebuilding, but the shortage of home supply is likely to remain a factor driving prices for the medium term.

Britain39;s finance minister Rachel…