House prices pick up to two-year high - Halifax

6th Sep 2024 07:01

(Sharecast News) - UK house prices edged up to a two-year high in August as confidence picked up amid easing interest rates, according to figures released by Halifax on Friday.

Prices rose 0.3% on the month following a 0.9% increase in July.

On the year, house prices rose 4.3% in August following a 2.4% gain the month before. This marked the strongest rate since November 2022, but Halifax pointed out that this was due in large part to the comparison with weaker growth this time last year.

The average price of a home stood at £292,505 versus £291,585 in July.

Amanda Bryden, head of mortgages at Halifax, said: "Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.

"Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.

"However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year."