0800 731 5821

House prices rise at fastest rate in nearly two years

House prices have risen at their fastest pace in almost two years, according to industry data, as optimism about lower interest rates begins to impact the property market.

The Halifax house price index shows the average house price in August increased by 4.3% compared to the same month last year. This is the sharpest rise since November 2022.

In August, house prices went up by 0.3%, following a 0.9% increase in July, pushing the typical home’s value to £292,505, the highest level in two years. The average house price is now just £1,000 below the record high set in June 2022.

Amanda 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.”

Figures from Nationwide also showed house prices rose at their fastest rate since December 2022 during the year to August.

Robert Gardner, Nationwide’s Chief Economist, said: “Average prices were up 2.4% year on year, a slight pickup from the 2.1% recorded in July and the fastest pace since December 2022 (2.8%). However, prices are still around 3% below the all-time highs recorded in the summer of 2022.

“While house price growth and activity remain subdued by historic standards, they nevertheless present a picture of resilience in the context of the higher interest rate environment and where house prices remain high relative to average earnings (which makes raising a deposit more challenging).

“Providing the economy continues to recover steadily, as we expect, housing market activity is likely to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth.”

Please contact us if you would like advice about the legal aspect of buying or selling a home.