The latest Halifax House Price Index shows annual growth reached 4.3% in August, the highest rate since November 2022
Home sellers are being rewarded for waiting out the market after Halifax data shows house price growth has approached a two-year high.
The latest Halifax House Price Index shows annual growth reached 4.3% in August, the highest rate since November 2022.
Prices jumped 0.3% on a monthly basis, compared with 0.9% in July, putting average prices at £292,505.
The figures coincide with the interest rate cut in August although the data may reflect mortgage applications with Halifax from months beforehand.
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, increasing by 9.8% on an annual basis in August.
The North West once again logged the strongest house price growth of any region in England, up by 4.0% annually, while London remains the most expensive area now averaging £536,056, up just 1.5% annually.
Amanda Bryden, head of mortgages for Halifax, pointed out that the strong annual increase was due in large part to the comparison with weaker growth this time last year.
She said: Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to declining interest rates.
That optimism is reflected in the latest mortgage approval figures, now at their highest level in nearly two years. Such has been the resilience of house prices that the average property is now just £1,000 short of the record high set in June 2022 (£293,507), she added.
While this is welcome news for existing homeowners, Bryden added that affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.
She added: With market activity rising and the possibility of further interest rate cuts to come, we expect house prices to continue their modest growth through the remainder of this year.
Commenting on the index, Guy Gittins, chief executive of Foxtons, said: The patience of UK home sellers is now being rewarded, as house prices are increasing consistently from one month to the next and at their fastest rate since 2002.
This growth is being driven by an increase in buyer activity and whilst this has been building since the start of the year, we have certainly seen it step up a gear since the general election, he said.
As a result, we are seeing more enquiries and more offers made, with buyers also acting with greater confidence since interest rates were cut at the start of the month, he said.
All in all, the outlook remains a positive one for the remainder of the year and we expect a strong level of activity to persist as we move into autumn, he added.
