6th Sep 2024 07:27
(Alliance News) - UK house prices rose in August at the fastest annual rate in nearly two years, data published by Halifax showed Friday.
UK house prices jumped 4.3% year-on-year in August, accelerating from 2.4% growth in July and the strongest rate since November 2022. July's annual growth was upwardly revised from a previously reported 2.3%. It beat FXStreet-cited market consensus of 4.2%.
On a monthly basis, UK house price growth decelerated to 0.3% in August from 0.9% in July, the earlier month's growth upwardly revised from a previously reported 0.8%. August's growth was higher than consensus of 0.2%.
The average UK house price stood at GBP292,505 in August, up from GBP280,372 a year ago and from GBP291,585 in July.
Northern Ireland saw the strongest on-year growth in house prices, up by 9.8% in August to a standardised average price of GBP201,043. This was followed by Wales, up 5.5% to GBP224,433.
The slowest increase in house prices was in eastern England, up 0.3% to a standardised average price of GBP330,511.
"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," said Amanda Bryden, head of Mortgages at Halifax.
On August 1, the Bank of England cut its interest rate to 5.00% from 5.25%.
Some of Britain's biggest lenders have been cutting mortgage rates this week, including sub-4% deals.
NatWest Group PLC launched a deal on Tuesday with the cheapest five-year fixed rate currently on the market, according to financial information website Moneyfacts.
Barclays PLC also reintroduced some new mortgage products and reduced rates on a selection of deals on Tuesday.
Barclays' new products include a five-year fixed-rate mortgage at 4.05% for people buying a home with a 25% deposit, with no product fee.
HSBC UK announced details of mortgage rate cuts across its ranges on Tuesday.
By Tom Budszus, Alliance News slot editor
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