Property prices in August rose to their highest level since2022, according to Halifax’s latest House Price Index ,with the average price of a home in the UK now at £292,505.
Prices increased by 0.3% in August, following an 0.9% rise in July, and were up 4.3% compared to the same month last year.
Amanda Bryden, Head of Mortgages at Halifax, said: “Recent price rises build on a largely positive summer for the UK housing market. Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.
“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.”
The bank said that the property market is likely to see“modest growth” for the remainder of the year, with the possibility of further rate cuts this year helping to boost market activity. The Bank of England’s Monetary Policy Committee is scheduled to meet on 19th September to decide whether or not interest rates should change or remain the same.
Northern Ireland retains strongest property price growth crown
Northern Ireland continues to record the highest price growth out of any region in the UK, with prices there up 9.8% compared to the same month last year. The average price of a property in Northern Ireland now stands at £201,043.
This compares to an average property price of £224,433 in Wales, which has recorded growth of 5.5% over the past year. Scotland, however, saw prices rise by just 1.7% compared to last year, with the average prices of a home there currently at £205,144.
The most expensive property prices in the UK continue to be in London, Halifax said, despite the capital seeing only a modest 1.5% increase in prices compared to last year. The average price of a London property is £536,056.
