UK House Price Inflation Highest Since November 2022: Halifax
07 October 2024 - 4:13PM
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UK house prices rose at the fastest annual rate in almost two
years in September due to base effects, survey data from the Lloyds
Bank subsidiary Halifax showed Monday.
The house price index rose 4.7 percent year-on-year in
September, faster than the 4.3 percent rise in August. Further,
this was the steepest increase since November 2022.
Higher annual growth continues to reflect the base impact of
weaker prices a year ago, the Halifax said.
On a month-on-month basis, house prices rose at a stable rate of
0.3 percent in September. Economists had forecast a 0.2 percent
increase. Prices rose for the third successive month.
The average house price now stands at GBP 293,399 versus GBP
292,540 in the previous month. Moreover, this was the highest price
since June 2022.
Among regions, Northern Ireland continues to record the
strongest annual house price growth in the UK.
Another highlight of the data showed that the average amount
paid by first-time buyers has increased by 4.2 percent over the
past year to GBP 232,769, its highest level since May 2024.
Nonetheless, that was still about GBP 1,000 less than the average
amount paid by a first-time buyer two years ago.
Amanda Bryden, Head of Mortgages, Halifax, said that market
conditions have steadily improved over the summer and into early
autumn, while mortgage affordability has been easing thanks to
strong wage growth and falling interest rates.
As a result, confidence among potential buyers strengthened as
the number of mortgages agreed up over 40 percent in the last year
and is now at its 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," the
Halifax Head said.
"As a result, we expect property price growth over the rest of
this year and into next to remain modest."
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