Your support helps us to tell the story
House prices have risen for the third month in a row, coming close to reaching a record high, according to an index from the UK’s largest mortgage lender.
The typical property value in September was £293,399, just £108 below a record high of £293,507 set in June 2022, said Halifax.
Compared with a year ago, Halifax said house prices were up 4.7 per cent – the fastest pace of growth since November 2022.
House prices increased by 0.3 per cent month-on-month in September, matching a rise seen in August.
The report also found the average amount paid by first-time buyers has increased by 4.2 per cent over the past year, or £9,409 in cash terms
This brings the typical first-time buyer property price up to £232,769 – the highest level since May 2024.
The amount is still around £1,000 less than the average amount paid by a first-time buyer two years ago, at £233,760.
Here is a map of average house prices, followed by annual increases, according to Halifax. Regional changes are based on the most recent three months of approved mortgage transaction data.
Amanda Bryden, head of mortgages at Halifax, said: “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.”
She added: “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% 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.”
Tom Bill, head of UK residential research at Knight Frank, said: “The last two years have underlined the close relationship between mortgage rates and house prices – as one goes up the other goes down.
“We expect low single-digit price growth this year as rates continue to drift lower, with the Budget the main cause of uncertainty on the horizon.”
