House prices increased for the third consecutive month in September, experiencing a slight increase of 0.3 per cent, data from Halifax has revealed.
Halifax’s House Price Index found the average house price experienced an increase in September to £293,399, just shy of the record high £293,507 that was set in June 2022.
This also represented an increase on an annual basis with year-on-year prices increasing by 4.7 per cent, the strongest rise since November 2022.
However, Halifax head of mortgages, Amanda Bryden, cautioned that it is “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,” she explained.
“Looking back two years, prices have increased by just 0.4 per cent (£1,202).”
A similar sentiment was shared by Hargreaves Lansdown head of personal finance, Sarah Coles, who said: “The property market continues its relentless trudge back to the summit it scaled at the peak of the post-pandemic boom in June 2022.
“One last push could take it to new heights next month, but it’s carrying the increasingly heavy baggage of pricier properties and more sellers.”
First-time buyers
The index also specifically examined the effect on first time buyers, discovering the average amount paid by first-time buyers has increased by 4.2 per cent over the past year, which equates to an extra £9,409 in cash terms.
This brings the typical first-time buyer property price up to £232,769, its highest level since May 2024.
However that is still about £1,000 less than the average amount paid by a first-time buyer two years ago, a decrease of around 0.4 per cent.
Regional disparities
Northern Ireland recorded the strongest property price growth of any region or nation in the UK, rising by 9.7 per cent on an annual basis in September, with the average price of a property in Northern Ireland now standing at £203,593.
House prices in Wales also recorded strong growth, increasing by 4.4 per cent 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 per cent more than the year before.
The North West once again recorded the strongest house price growth of any region in England, increasing by 5.1 per cent over the last year to £234,355.
London continued to have the most expensive property prices in the UK, now averaging £539,238, up 2.6 per cent compared to last year.
tom.dunstan@ft.com
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