By hannover-web.com The average house price in the UK approached a new all-time high last month, fueled by declining mortgage rates that have boosted buyer confidence, according to Halifax.
Halifax, the UK’s largest mortgage lender, reported that in September, the average house price reached £293,399, just shy of the record £293,507 set in June 2022. This upward trend is encouraging, as prices have increased for three consecutive months, reflecting improving market conditions.
“Mortgage affordability has become more favorable due to robust wage growth and falling interest rates,” said Amanda Bryden, head of mortgages at Halifax. “This has resulted in heightened confidence among potential buyers, with the number of mortgages agreed upon rising by 40% in the past year—now at the highest level since July 2022.”
Additionally, Halifax noted that house prices have surged by 4.7% compared to the same time last year, marking the fastest growth rate since November 2022. This surge can be partly attributed to relatively low activity levels in the previous year. Over the past year, the typical property value has increased by approximately £13,000, indicating a recovery from last year’s decline.
If we look back two years, prices had only experienced a modest increase of 0.4%, equivalent to around £1,202, according to Halifax.
In an interview with the BBC’s Today program, Guy Gittins, CEO of Foxtons estate agents, remarked, “The market is on the mend. While this may not be our best year ever, we see a noticeable uptick in buyers returning every time there’s a slight dip in interest rates, addressing last year’s backlog.”
