The lender’s latest House Price Index shows a small reduction in prices for September, but the housing market remains stable.
At the start of October, we published Nationwide’s September House Price Index showing annual price growth of 2.2%. However, the latest House Price Index published on 7 October by Halifax for September shows a slight price dip of 0.3%.
According to Halifax, the average property price now stands at £298,184, which is around £794 less than August.
So why the difference in prices? Halifax bases its index on mortgage lending data from Lloyds, which includes Halifax and Bank of Scotland.
Nationwide uses its own mortgage approvals data. Each lender draws from different sets of customers, which means that the sample of properties, buyers, and regions can vary, leading to slightly different results.
While the figures are slightly different, both lenders seem confident that the housing market is steady.
Halifax’s figures show that over the past 12 months, prices are still 1.3% higher than last year, and since January, they’ve edged up by 0.3%.
Housing market remains steady
‘This slight monthly dip reflects a housing market that’s remained steady,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘Affordability remains a challenge, but lower mortgage rates and steady wage growth are helping to support buyer confidence. We expect modest growth throughout the remainder of the year.’
A shortage of properties is another reason why the housing market is expected to remain robust for the foreseeable future.
‘While house prices remain broadly flat across the country, there are still pockets where house prices are increasing,’ says Les Pick, MB Associates’ Sales & Operations Director. ‘These areas include lower property prices on average, and we are seeing a small degree of house price levelling between lower and higher cost regions.
Les adds: ‘However, there is a chronic shortage of new properties with only 200,000 homes being built each year despite a demand of around 300,000. The average household size is dropping because people are living independently for longer. Figures from the Office for National Statistics show that in 2024, 29.5% of UK households were single-occupancy, and over 50% of those were inhabited by people aged 65 or older. This will open housing stock at the top of the housing chain in the medium to long term.’
Regional house price differences
Northern Ireland leads the way again, with house prices up 6.5% year-on-year to an average of £216,496.
Scotland also performed strongly, up 4.5% to £215,588, while the North East of England saw a 4.8% rise to £180,443.
In contrast, London prices rose by just 0.6% to £543,497, and the South West saw a slight annual decline of 0.2%, bringing the average home price to £303,067.
For first-time buyers, the average property now costs £236,811 – a 1.7% increase year-on-year – with numerous affordable opportunities still available across various regions.
If you’re considering buying a home soon, the latest figures indicate a market that’s steady and balanced. With mortgage rates gradually easing and wages remaining stable, affordability is improving slowly, which is helping to rebuild buyer confidence.