House prices have increased to their highest point in two years, research from Halifax has found.
Halifax’s House Price Index, found prices have increased by 4.3 per cent on a yearly basis and the average house price is now £292,505.
This is the strongest rate since November 2022.
Prices were also found to have increased by 0.3 per cent on a monthly basis, following the similar increase of 0.9 per cent recorded in August.
Halifax head of mortgages, Amanda Bryden, said: “Recent prices rises build on a largely positive summer for the UK housing market.
“Prospective homebuyers are feeling more confident thanks to easing interest rates.
“The optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.”
Bryden said due to market activity picking up and the possibility of further interest rate reductions to come, she expects house prices to continue their modest growth through the remainder of this year.
Propertymark CEO, Nathan Emerson said: “It is reassuring to witness the market moving forward from what has been a very fluid few years, where household affordability has been at near breaking point for many people.
“As the benefits of lower inflation and interest rates fully start to bed in, Propertymark is confident there will be further market growth as the year plays out.
“We are, however, keen to see the UK Government’s housebuilding programme spring into action to help alleviate the ongoing mismatch between supply and demand, as it is essential to keep pace with an ever-growing population.”
Regional disparity
The index found Northern Ireland continued to record the strongest property price growth of any nation or region in the UK, rising by 9.8 per cent on an annual basis in August.
The average price of a property in Northern Ireland is now £201,043.
House prices in Wales also recorded strong growth, an increase of 5.5 per cent compared to the previous year, with properties now costing an average of £224,433.
Meanwhile, Scotland saw a more modest rise in house prices, where a typical property now costs £205,144.
This represents a rise of 1.7 per cent when compared with the year before.
The north west recorded the strongest house price growth of any region in England yet again, rising by 4 per cent over the last year to sit at £232,917.
London continued to have the most expensive property prices in the UK, now averaging £536,056, up 1.5 per cent compared to last year.
tom.dunstan@ft.com
What's your view?
Have your say in the comments section below or email us: ftadviser.newsdesk@ft.com
