House prices rise again in September, near record highs - Halifax

7th Oct 2024 07:13

(Sharecast News) - UK house prices rose in September for the third month in a row and were close to record highs amid cheaper mortgage rates, according to figures released on Monday by Halifax.

Prices rose 0.3% on the month, matching the increase seen in August. On the year, meanwhile, house prices were up 4.7% in September following a 4.3% jump the month before. This was still the strongest rate since November 2022.

The average price of a home stood at £293,399 - just shy of the record high of £293,507 set in June 2022 - versus £292,540 in August.

Amanda Bryden, head of Mortgages at Halifax, said it was essential to view the 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% (£1,202)," she said.

"Market conditions have steadily improved over the summer and into early autumn. 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.

"While improved mortgage affordability should continue to support buyer activity - boosted by anticipated further cuts to interest rates - housing costs remain a challenge for many. As a result we expect property price growth over the rest of this year and into next to remain modest."