UK house prices rise 0.3% in September – Halifax

UK house prices rose by 0.3 per cent in September, maintaining the increase seen in August. The increase brings the average property price to £293,399, the highest since June 2022, up from £292,540 the previous month.

On a year-on-year basis, house prices increased by 4.7 per cent, the strongest rate of annual growth since November 2022. The increase is largely driven by the base effect of weaker prices from the previous year.

Amanda Bryden, Head of Mortgages at Halifax, stated, “UK house prices climbed for the third consecutive month in September. Although property values have risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months.”

First-time buyers saw property prices rose by 4.2 per cent in the past year, bringing the typical price to £232,769—still about £1,000 lower than two years ago. Mortgage affordability has improved, thanks to higher wage growth and falling interest rates, leading to a 40 per cent increase in mortgage agreements, the highest since July 2022.

Regional analysis showed that Northern Ireland recorded the highest annual growth at 9.7 per cent, with average prices reaching £203,593. Wales also posted significant growth at 4.4 per cent, while Scotland’s average property prices rose by 2.1 per cent to £205,718.

In England, the North West led with a 5.1 per cent increase, with average prices at £234,355. London, though still the most expensive region with an average property price of £539,238, saw a modest annual rise of 2.6 per cent, remaining below its peak of £552,592 set in August 2022.

Despite improved market conditions, Bryden warned that high housing costs would likely limit further price growth in the short term, with expectations for modest increases extending into next year.

Attribution: Halifax

Subediting: M. S. Salama