Halifax have released their House Price Index, which has revealed that house prices have risen for a third successive month. House prices increased by +0.3% in September, matching the rise seen in August.
The Year-on-year prices are up +4.7%, which is still the strongest rate since November 2022. Higher annual growth reflects the base impact of weaker prices a year ago. Typically, property now costs £293,399 (compared to £292,540 in August), the highest since June 2022, while the average amount paid by first-time buyers is now around £1,000 less than two years ago. Northern Ireland continues to record the strongest annual house price growth in the UK.
Amanda Bryden, Head of Mortgages, Halifax, said:
“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. Annual growth edged up to +4.7%, the highest rate since November 2022. This brings the average property price up to £293,399, just shy of the record high of £293,507 set in June 2022.
“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% (£1,202).
“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.”
Nations and regions house prices
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by +9.7% on an annual basis in September. The average price of a property in Northern Ireland is now £203,593.
House prices in Wales also recorded strong growth, up +4.4%, compared to the previous year, with properties now costing an average of £224,119.
Scotland saw a more modest rise in house prices, where a typical property now costs £205,718, +2.1% more than the year before.
The North West once again recorded the strongest house price growth of any region in England, up by +5.1% over the last year, to sit at £234,355.
London continues to have the most expensive property prices in the UK, now averaging £539,238, up +2.6% compared to last year. This is still some way below the capital’s peak property price of £552,592 set in August 2022.
