UK house prices rises for third straight month in September

House prices rose for the third straight month in September, according to Halifax.

The bank’s house price index showed that the average house price in the UK hit £293,399 in the month, a 0.3% rise on the previous month.

Prices also rose 1.2% on the quarter and 4.7% on the year, the highest annual rate since November 2022.

The increase brings average prices to just shy of the record high of £293.507 set in June 202.

Halifax said the higher annual growth reflected the impact of weaker prices a year ago, with the average amount paid by first-time buyers still around £1,000 less than two years ago. 

Amanda Bryden, Head of Mortgages, 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.”

Looking back over two years, prices have increased just 0.4%.

“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,” Bryden added.

“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. 

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“As a result we expect property price growth over the rest of this year and into next to remain modest.” 

Marc von Grundherr, director of estate agent Benham and Reeves, said it was “clear from the latest figures that the market is making a full return to health” and that “much of the negativity of the last few years has now been reversed”.

Guy Gittins, chief executive of Foxtons, added: “Increased mortgage market certainty is allowing UK buyers to act with greater confidence and we’ve seen the rates available on many mortgage products continue to trend downwards since a hold on the base rate in September of last year.

“Not only has this helped to accelerate the rate of house price growth being seen across the UK property market, but we’re now seeing transactional volumes climb as these sales make it over the line.

“In fact, the latest government figures show that in August, the number of monthly transactions exceeded the 100,000 threshold for the first time since December 2022. A very positive sign indeed and a strong indication that the market is now returning to form.”