Copy article

Halifax: House prices rise by +0.3% in September

ended 07. October 2024

House prices increased by +0.3% in September, matching the rise seen in August, while year-on-year prices are up +4.7%, still the strongest rate since November 2022, according to the Halifax.

Amanda Bryden, Head of Mortgages, Halifax, said: "UK house prices climbed for the third month in a row in September, with a slight increase of +0.3%, or £859 in cash terms. Annual growth edged up to +4.7%, the highest rate since November 2022. This brings the average property price up to £293,399, just shy of the record high of £293,507 set in June 2022.

"It’s essential to view these recent gains in context. While the typical property value has risen by around £13,000 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% (£1,202).

"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.

“While improved mortgage affordability should continue to support buyer activity – boosted by anticipated further cuts to interest rates – housing costs remain a challenge for many. As a result we expect property price growth over the rest of this year and into next to remain modest.”

Comments from experts below.

7 responses from the Newspage community

Copy all

Star Quote
Copy

Editor
Andrew Montlake
Managing Director at Coreco
The property market continues to fire, as this latest data from the Halifax shows. Lower borrowing costs continue to drive demand and sentiment picked up quite considerably last month. People have a spring in their step. The focus now is on the autumn Budget and the hope is that it doesn't undo all the momentum that has grown over the summer and put us back where we started.
Star Quote
Copy

Editor
Emma Jones
Managing Director at Whenthebanksaysno.co.uk
Falling mortgage rates and strong wage growth are boosting affordability and that is helping drive the market forward. Lower borrowing costs in recent months have injected life into the market and that looks set to continue. Lenders fighting for market share is really stimulating demand and that is likely to carry on all the way up to Christmas. The obvious road bump ahead is the autumn Budget.
Copy

Editor
Stephen Perkins
Managing Director at Yellow Brick Mortgages
That house prices rose again in September comes as no surprise given strong mortgage demand, improving affordability and much improved sentiment. Demand remained resilient in September as borrowers looked to initiate their home moves before the Autumn budget potentially takes the wind out of their sails. Continued rate reductions from the biggest lenders also helped propel house prices upward. Yes, this growth has to be put into context and is making up lost ground but that is what history shows the property market consistently does.
Copy

Editor
Simon Bridgland
Director at Charwin Private Clients
Property transactions continued to rise during September, as a growing number of buyers went out, mortgage in principle in hand, hunting for the first or next place to call home. This semi-feverish activity has pushed house prices up further, as borrowers have revelled in the sub-4% mortgage rate market. We saw an uptick in mortgage enquiries of almost two thirds as people sought to buy while the going is still good. Halloween could scare the pants off of the grown-ups this year, as the nation waits for the Autumn Budget, There's a perception that the Chancellor is cooking up a poisonous brew that could be a set-back for both borrowers and bricks and mortar. Hopefully she reads the mood of the nation, or it could spell the end of her rein as Chancellor if she gets it wrong. Interest rates could be forced upwards if Reeves makes a Truss of things.
Copy

Editor
David Stirling
Independent Financial Advisor at Mint Wealth
Property prices have continued to rise this year, with growth particularly high in Northern Ireland as this data shows. Competition at the estate agents is unabated. The good news is that there is still a southward trend in interest rates and lenders need to hit lending targets for 2024, so we can hopefully expect more cheaper rates to come available. The bad news is that inflation, the Middle East conflict and the potentially spooky Halloween Budget are hanging over the property market like the Sword of Damocles. Any one of these could derail the market.
Copy

Editor
Gabriel McKeown
Head of Macroeconomics at Sad Rabbit - Substack Newsletter
Britain’s property market renaissance continues, like a phoenix rising from the ashes of pessimism, with house prices showcasing resilience in the face of persistent economic uncertainty. The latest Halifax HPI data paints a picture of a market that's finding its footing, with the combination of a competitive mortgage landscape and expectations of interest rate cuts creating an environment ripe for activity. However, there is still considerable uncertainty on the horizon, with the upcoming Budget looming as a potential Midas touch for house prices, with policy changes capable of bolstering the market or exacerbating existing vulnerabilities. Furthermore, consumer confidence will play a vital role in dictating the direction of house prices, with the cost of living crisis still casting a long shadow over the market. The property market is at an inflection point, and only time will tell whether the current momentum can overcome the significant economic and policy hurdles that lie ahead.
Copy

Editor
Craig Fish
Director at Lodestone Mortgages
Reducing interest rates and improving affordability was only ever going to result in house prices going in one direction, despite what the doomsayers would try to make everyone believe. These modest increases will continue their steady upwards journey and before you know it we will shift to a sellers' market. The UK housing market is flexing its muscles and showing its resilience. Slow and steady will continue to win the race.