UK

House prices rose for third straight month in September

house prices

According to Halifax, year-on-year, prices have soared by 4.7%, marking the strongest growth rate since November 2022

UK house prices have jumped for the third successive month in September, rising by 0.3% or £859, as dropping mortgages rates boosted the property market.

According to Halifax, year-on-year, prices have soared by 4.7%, marking the strongest growth rate since November 2022.

The typical property price stands at £293,399, marginally up from £292,540 in August, and represents the highest level since June 2022. This left the average price only a little short of the record high of £293,507 set in June 2022, on Halifax’s index, before the market started to drop in autumn 2022 after the mini-budget pushed up mortgage rates.

For FTBs, the average amount paid is almost £1,000 lower than it was two years ago, highlighting a shift in market dynamics.

Amanda Bryden, head of Mortgages at Halifax, said: UK house prices jumped for the third month in a row in September, with a marginal rise of £859 in cash terms. The annual growth rate has increased to 4.7%, bringing the average property price close to the record high of £293,507 set in June 2022.

Bryden said these gains had to be viewed in context: While the typical property value has increased by nearly £13,000 over the last year, this rise primarily represents a recovery of losses from the previous year. Over the last two years, prices have only increased by a modest 0.4% (£1,202).

The housing market has shown signs of improvement through the summer and into early autumn. Enhanced mortgage affordability, driven by strong wage growth and dropping interest rates, has bolstered confidence among prospective buyers. The number of mortgages agreed upon has soared more than 40% in the past year, reaching its highest level since July 2022.

While improved mortgage affordability is likely to support buyer activity — particularly with anticipated further cuts to interest rates — housing costs remain a significant challenge for many. As a result, we expect property price growth to remain modest for the remainder of this year and into next, Bryden said.

Northern Ireland has emerged as the standout performer in the UK property market, logging an annual growth of 9.7% in September. The average price of a home in the region stands at £203,593, an increase that makes it the strongest property price growth of any nation or region in the UK.

In Wales, the property market is also recording rising demand, with prices increasing by 4.4% year-on-year. The average home in Wales is now valued at £224,119.

Scotland has logged more modest rise in house prices. The typical property costs £205,718, up 2.1% from the previous year.

In England, the North West has claimed the title for the highest growth, with house prices jumping by 5.1% over the last year, bringing the average price to £234,355.

Meanwhile, London continues to command the highest property prices in the UK, with the average home now priced at £539,238, a 2.6% increase from last year. However, this number remains below the capital’s peak of £552,592 hit in August 2022.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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