Northern Ireland has experienced the highest annual house price growth of 12 UK regions to hit an average of £204,242, a report from Halifax has said.
The lender said Northern Ireland’s average house prices had climbed by 10.2% over the year – significantly outpacing growth in other regions.
The next-strongest growth was in the North West of England, where the average price had climbed by 5.9% to hit £235,587.
But average house prices here are still far below the UK, with our typical price of £204,242 more than 40% below the UK-wide figure of £293,999.
Halifax said the UK average had hit a record high in October, with growth of 0.2% the fourth monthly increase in a row. The figure also surpassed a previous peak in June 2022.
Property values increased by 3.9% annually, slowing from a 4.6% increase in September.
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Amanda Bryden, head of mortgages at Halifax, said: “Average UK house prices nudged up 0.2% in October, continuing the positive momentum of recent months.
“This brought the annual growth rate to 3.9%, slightly lower than in September.
“The average property price has reached a record high of £293,999, surpassing the previous peak of £293,507 set in June 2022, towards the end of the pandemic-era ‘race for space’.
“That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.
“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a 0.2% increase overall.
“That’s a significant slowdown compared to the 21% rise we saw in the equivalent period from January 2020 to the summer of 2022.”
Ms Bryden continued: “Despite the affordability challenge, market activity has been improving.
“The number of new mortgages agreed recently reached its highest level in two years. “This aligns with average mortgage rates dropping steadily since spring.”
Borrowing constraints remain a challenge for many buyers, she said, adding: “New policies like higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers might also affect demand.
“While we expect house prices to keep growing, it will likely be at a modest pace for the rest of this year and into next.”
“The potential for a slower pace of interest rate cuts won’t be the news homebuyers will want to hear, particularly as they must also contend with tax rises.
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Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, an online investment service, said: “While the UK residential property market enjoyed a post-election resurgence over the summer as affordability concerns eased, the outlook from here is mixed.”
She added: “Mortgage rates may not behave as people hope. Volatile swap rates in the wake of the Budget have been a cause for concern as they raise the risk of borrowing costs edging up.”
Here are average house prices followed by the annual increase, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transactions):
East Midlands, £242,189, 4.4%
Eastern England, £333,741, 3.1%
London, £543,308, 3.5%
North East, £172,730, 4.0%
North West, £235,587, 5.9%
Northern Ireland, £204,242, 10.2%
Scotland, £206,480, 1.9%
South East, £387,587, 3.2%
South West, £303,362, 3.3%
Wales, £225,543, 5.6%
West Midlands, £257,287, 4.7%
Yorkshire and the Humber, £211,629, 5.3%