Halifax’s latest figures show a third consecutive monthly increase in property prices, with market conditions continuing to improve.
House prices have risen for the third month in a row, according to Halifax. The lender’s latest House Price Index for September published on 7 October shows that price went up by 0.3%, a quarterly change of 1.2% and an annual rise of 4.7%.
The average house price is now £293,399 compared to £292,540 in August. The annual price rise of 4.7% is the strongest rate of growth since November 2022.
‘UK house prices climbed for the third month in a row in September, with a slight increase of 0.3%, or £859 in cash terms,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘It’s essential to view these recent gains in context. While the typical property value has risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have increased by just 0.4% (£1202).’
‘Market conditions have steadily improved over the summer and into the early autumn,’ adds Bryden. ‘Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.’
Anticipated future rate cuts
Halifax says that improved affordability should support the property market along with anticipated future interest rate cuts. It predicts ‘modest’ house price growth for the rest of 2024 and into 2025.
First-time buyers have paid 4.2% more for property prices over the past year, or an extra £9409 in cash terms. The average first-time buyer property is now up to £232,769—its highest level since May 2024.
Northern Ireland shows the strongest property price growth, rising by 9.7% annually in September. The average property price in Ireland now costs £203,593.
Wales also showed strong growth, with prices up 4.4% annually, compared to the previous year, and the average price is now £224,119.
In England, the North West showed the strongest house price growth of any region, up by 5.1% over the last year, with the average price at £234,355.