House prices just short of record high in September

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House prices rose by 0.3% month-on-month in September, matching a rise seen in August

The average UK house price last month was just over £100 away from a record high, according to Halifax’s latest house price index. The average London house has hit £539,238, which is 2.6% higher than this time last year.

The typical UK property value in September was £293,399, just £108 below a record high of £293,507 set in June 2022, Halifax said.

House prices rose by 0.3% month-on-month in September, matching a rise seen in August.

Year-on-year price growth accelerated to 4.7%, from 4.3% in August.

Amanda Bryden, head of mortgages at Halifax, said: UK house prices jumped for the third month in a row in September, with a slight rise of 0.3%, or £859 in cash terms.

Annual growth rose to 4.7%, the highest rate since November 2022. This brings the average property price up to £293,399, just short of the record high of £293,507 set in June 2022, she said.

It is essential to view these recent gains in context. While the typical property value has risen by nearly £13,000 over the past year, this rise is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have risen by just 0.4% (£1,202), Bryden said.

Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and dropping interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up more than 40% in the last year and now at their highest level since July 2022, she said.

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, she added.

The average amount paid by FTBs has risen by 4.2% over the past year, or £9,409 in cash terms, according to the report. This brings the typical FTB property price up to £232,769 – the highest level since May 2024.

The amount is still around £1,000 less than the average amount paid by a FTB two years ago, at £233,760.

Tom Bill, head of UK residential research at Knight Frank, said: The last two years have underlined the close relationship between mortgage rates and house prices – as one goes up the other goes down.

He said: We expect low single-digit price growth this year as rates continue to drift lower, with the Budget the main cause of uncertainty on the horizon.

The post House prices just short of record high in September first appeared on Invest for Property London, Buy Residential property UK.
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