The average UK house price hit two-year high during ‘positive summer’ for market
The building society said the typical property now costs £292,505, according to its model, which uses data from across the UK.
August’s small monthly rise comes after a faster 0.9 per cent increase in July, but year-on-year prices are up 4.3 per cent, Halifax added, the strongest rate since November 2022.
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Hide AdAmanda Bryden, head of mortgages at Halifax, said: “Recent price rises build on a largely positive summer for the UK housing market. 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.”
The average property is just £1,000 short of the record price set in Halifax’s house price index of £293,507 in June 2022.
Ms Bryden continued: “While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.
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Hide Ad“However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”
It comes after the Bank of England voted to cut the base interest rate by a quarter point at the start of August to 5 per cent, which some experts said has given buyers more confidence.
The strongest growth came in Northern Ireland, which saw house prices rise 9.8 per cent annually. Wales also came in at 5.5 per cent. The most expensive average properties were still found in London, now averaging £536,056, up 1.5 per cent on a year ago.
Jeremy Leaf, north London estate agent and industry veteran, called the figures “solid, not spectacular”. Mark Harris, chief executive of mortgage broker SPF Private Clients, added that the mortgage market “remains volatile”.
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Hide AdHe added: “However, unlike a few months ago, the difference now is that mortgage rates are falling rather than rising, which is good news for affordability.”
Iain McKenzie, CEO of The Guild of Property Professionals, commented: “Recent data has sent mixed messages about the state of the UK’s housing market, but today’s figures suggest we’re heading for an awesome autumn.
“Market activity has been quietly picking up over the summer, and economic indicators are starting to point in the right direction.
“Headline inflation seems to be holding steady just over the 2 per cent target by the Bank of England.
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Hide Ad"It is worth noting that affordability concerns remain, as not all households are seeing living costs come down. It will be interesting to see how high-street banks react to interest rates creeping down. They are guilty of being cautious when it comes to passing immediate changes onto the consumer, so it may be a while until we see lower borrowing costs and more mortgage offers return to the market.
"A structural undersupply of housing remains in many parts of the UK, which continues to provide some support for prices. The new government’s priority of building new homes would increase supply, but would not have any sudden impact on driving prices down. Many buyers see the autumn months as the time to make a move, with families in particular keen to be in their new home for Christmas.”
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