7th Oct 2024 09:20
(Alliance News) - UK house prices grew at the strongest pace in almost two years last month, on "steadily improving" market confidence, according to mortgage lender Halifax on Monday.
Halifax's September report showed UK house prices rose 0.3% from August and 4.7% year-on-year. In August, house prices rose 0.3% from July and 4.3% on-year.
September's annual climb was the strongest since November 2022, Halifax said.
"It's essential to view these recent gains in context. While the typical property value has risen by around GBP13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have increased by just 0.4%," Halifax analyst Amanda Bryden commented.
"Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. 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."
At its August meeting, the BoE's Monetary Policy Committee voted 5-4 to cut the bank rate by 25 basis points to 5.00%. It maintained rates at 5.00% in last month's meeting.
The average UK house price stood at GBP293,399 last month, after a sixth-successive rise.
By Eric Cunha, Alliance News news editor
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