House prices have risen for the third consecutive month across the country, with a 0.3 per cent increase in September, according to the latest data released today.
This brings the average property price to £293,399, just shy of the record high set in June 2022. However, some UK regions and areas have seen an even bigger increase.
The annual growth rate has edged up to 4.7 per cent, the strongest since November 2022. This represents a recovery of ground lost over the previous year, with prices increasing by approximately £13,000 in the past 12 months.
However, it’s important to note that when looking back two years, prices have only increased by 0.4 per cent, or £1,202. This modest long-term growth highlights the volatility of the housing market in recent times.
Property prices in Northern Ireland have increased the most
PA
The recent gains come amidst improving market conditions, with mortgage affordability easing and buyer confidence on the rise.
Regional differences in house price growth remain significant across the UK. Northern Ireland continues to lead, recording the strongest annual growth with a huge 9.7 per cent, with the average property now costing £203,593.
Wales also saw robust growth, with prices up 4.4 per cent year-on-year, bringing the average property value to £224,119. Scotland experienced more modest gains, with a 2.1 per cent annual increase, resulting in an average property price of £205,718.
In England, the North West emerged as the top-performing region, with house prices rising by 5.1 per cent over the last year. The average property in this region now costs £234,355.
These regional variations highlight the diverse nature of the UK housing market, with some areas experiencing significant growth while others see more moderate increases.
Areas with the largest house price increase
Northern Ireland – £203,593 (up 9.3%)
North West – £234,355 (up 5.1%)
Wales – £224,119 (up 4.4%)
Scotland – £205,718 (up 2.1%)
Head of Mortgages at Halifax Amanda Bryden said: “UK house prices climbed for the third month in a row in September, with a slight increase of +0.3 per cent, or £859 in cash terms. Annual growth edged up to +4.7 per cent, the highest rate since November 2022. This brings the average property price up to £293,399, just shy of the record high of £293,507 set in June 2022.
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Prices are up on average across the UK
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“It’s 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. Looking back two years, prices have increased by just +0.4 per cent (£1,202).
“Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40 per cent 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.”