According to Halifax, the UK’s largest mortgage lender, average house prices rose by 0.3% in September, matching August’s increase. The annual inflation rate for house prices stands at 4.7%, the highest since November 2022, with typical property values now at £293,399. Northern Ireland recorded the strongest growth at 9.7%, while Wales and the North West also saw significant increases.

The average property price for first-time buyers rose by 4.2%, bringing the typical cost to £232,769, though this is about £1,000 lower than two years ago. 

Amanda Bryden, head of mortgages at Halifax, emphasized the importance of context regarding these increases, as they mainly recover previous losses. Despite improved mortgage conditions, ongoing affordability challenges may keep property price growth modest in the coming months.

Boosted confidence among potential buyers, led to the number of mortgages agreed to be 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.”