House prices experience biggest annual rise since 2022
The latest figures from Halifax’s Housing Index show property prices increased by 0.3% in August after a bumper 0.9% rise in July.
According to experts, who published the figures this morning, year-on-year house prices are up by 4.3%, which is the strongest growth recorded since November 2022. The average home in the UK now costs £292,505 which is the highest prices have been since August 2022.
Amanda Bryden, head of mortgages at Halifax said the falling mortgage rates are one of the reasons the housing market has been kicked back into life over the last few months.
‘Recent price rises build on a largely positive summer for the UK housing market,’ Bryden said. ‘Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years.’
In addition, housing industry experts have forecast that house prices will continue to increase over the autumn months.
Daniel Austin, CEO and co-founder at ASK Partners, said: ‘We’re continuing to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the rest of the year.
‘The market certainly appears to be showing signs of resilience. Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system, and it is likely that initiatives announced in the coming months will give the market a further boost.’
‘As a debt provider, we hope to support well-capitalised borrowers who understand their product and are looking at the best sites in prime locations with potential to add to their asset value,’ Austin added. ‘Following this strategy, we aim to bolster developers’ initiatives with the flexible underwriting approach that is necessary for navigating a changing market. This will enable us to continue to offer opportunities for the growing number of private individuals opting to invest in property debt.’
However, despite the positive news, there are still signs of disparity in house price growth across the country. For example, figures from Halifax show prices in Eastern England are only up by 0.3% and in Greater London, where the typical home is worth £536,000, has only seen prices rise 1.5% over the last 12 months on average.
Image: Daniel Abadia
