UK house prices almost achieved national record
With mortgage rates coming down, new data from Halifax shows the average price of a property hit £292,399 in September.
The figures, which were published this morning, illustrate that house prices almost hit the record reached in June 2022 when they were marketed, on average, at £292,507.
What’s more, the UK’s largest mortgage lender said house prices were up at 4.7% – the fastest pace of growth since November 2022.
All in all, prices have increased for three months in a row as market conditions continue to improve. One example of this, was the Bank of England’s decision to finally lower interest rates to 5% in August – the first time they had been reduced since 2021.
‘Mortgage affordability has been easing thanks to strong wage growth and falling interest rates,’ said Amanda Bryden, head of mortgages at Halifax. ‘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.’
The optimistic tone adopted by Bryden has also been shared by many within the property sector. Below, we’ve shared a number of opinions echoed by industry experts since the data was made public.
Tom Brown, managing director at Real Estate at Ingenious
‘Today’s data shows that the resilience and appeal of the UK property sector persist. Though we have seen higher inflation and sticky borrowing rates, we welcome the BoE’s focus on rate cutting and what will hopefully be the start of the much needed falling rate cycle.
‘There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away.
‘However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.’
Daniel Austin, CEO and co-founder at ASK Partners
‘We are continuing to see a consistent month-on-month rise in house prices, which signals a potential upward trend for the remainder of the year. The market is showing strong signs of resilience, even amid broader uncertainties. Much anticipation surrounds Labour’s plans to stimulate the housing sector, particularly regarding the construction of new homes and unlocking the planning system. If effective initiatives are announced in the coming months, they could provide the market with an additional boost, driving further growth and confidence in the sector.
‘In the property investment world, rent values have seen sustained growth, positioning real estate as reasonably valued in comparison to gilts and presenting growth potential. In the realm of commercial real estate, we have seen values hit the bottom and confidence return. The market has picked up with opportunistic acquisitions of prime properties in prime locations.
‘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. 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.’
Verona Frankish, CEO of Yopa
‘The property market has bounced back following a period of prolonged uncertainty caused by higher interest rates and, whilst they remain considerably higher than many homebuyers will have become accustomed to in recent years, we’re now seeing buyers return with confidence following the base rate cut seen in August.’
Marc von Grundherr, director of Benham and Reeves
‘It’s clear from the latest figures that the market is making a full return to health and much of the negativity of the last few years has now been reversed, as increasing buyers interest continues to cultivate the highest rate of house price growth seen since November 2022.’
In related news:
