The average UK house price reached a two-year peak in August, rising 0.3 percent from the previous month, as per the latest data from Halifax. The building society revealed that the typical property now costs £292,505, based on its model which utilises data from across the UK.
Following a more rapid 0.9 percent increase in July, August’s modest monthly rise sees year-on-year prices up by 4.3 percent, marking the strongest rate since November 2022, according to Halifax. Amanda Bryden, head of mortgages at Halifax, commented: “Recent price rises build on a largely positive summer for the UK housing market.”
She added: “Prospective homebuyers are feeling more confident thanks to easing interest rates.”
This optimism is mirrored in the latest mortgage approval figures, which are now at their highest level in almost two years.
The average property is just £1,000 shy of the record price set in Halifax’s house price index of £293,507 in June 2022. Ms Bryden continued: “While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.”
However, she anticipates that with market activity on the rise and the potential for further interest rate cuts, house prices will continue their modest growth throughout the remainder of the year.
This comes after the Bank of England decided to reduce the base interest rate by a quarter point at the beginning of August to five percent, a move that some experts believe has boosted buyer confidence.
House prices in Northern Ireland led the way with a staggering 9.8 percent annual rise, while Wales boasted a healthy 5.5 percent increase.
Meanwhile, London maintained its position as the location with the priciest properties, the average standing at an eye-watering £536,056, marking a 1.5 percent uptick from the previous year.
Commenting on the data, north London estate agent and industry stalwart Jeremy Leaf described the numbers as “solid, not spectacular”.
Mark Harris, CEO of mortgage broker SPF Private Clients, noted the mortgage market “remains volatile”.
In a positive turn for prospective buyers, Mr Harris observed: “However, unlike a few months ago, the difference now is that mortgage rates are falling rather than rising, which is good news for affordability.”
Jonathan Hopper, CEO of Garrington Property Finders, said: “In recent weeks we’ve seen a surge of homes come onto the market, and this jump in supply has yet to be fully absorbed. Over the next few months price rises could moderate as the market rebalances.
“With many buyers spoilt for choice and sellers keen to get a deal done, big discounts are still achievable for buyers who do their homework and negotiate effectively.”
