Average UK house prices edged up further in August following a July rise of 0.9%, according to the latest data released by Halifax.
UK house prices have increased by a further 0.3% in August following the previous month's rise of 0.9%, with the price of a typical home in the UK now standing at £292,505.
Newly released data from Halifax has shown that year-on-year prices are now up by 4.3% - the strongest levels since November 2022.
National and regional breakdown
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by +9.8% on an annual basis in August. The average price of a property in Northern Ireland is now £201,043.
House prices in Wales also recorded strong growth, up +5.5%, compared to the previous year, with properties now costing an average of £224,433.
Scotland saw a more modest rise in house prices, where a typical property now costs £205,144,
+1.7% more than the year before.
The North West once again recorded the strongest house price growth of any region in England, up by +4.0% over the last year, to sit at £232,917.
London continues to have the most expensive property prices in the UK, now averaging £536,056, up by 1.5% compared to last year.
Amanda Bryden, Head of Mortgages, Halifax, said: “House prices increased by +0.3% in August, following a rise of +0.9% in July, with the typical property now costing £292,505. Annual growth has risen to +4.3%, the strongest rate since November 2022, but this is due in large part to the comparison with weaker growth this time last year.
“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.
“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.
“However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”
Tom Bill, head of UK residential research at Knight Frank, said: “The strength of the UK housing market is one of several indicators at odds with gloomy government rhetoric about the state of the economy. As inflation comes under control and mortgage rates decline, we expect demand and transaction activity will be stronger this autumn than in the last two years.
"People will continue to roll onto less favourable mortgage deals compared to recent years, which will keep house price growth in check, but rates are expected to head further down over the next 12 months.”
Nathan Emerson CEO at Propertymark comments: “It is always encouraging to see enhanced levels of consumer confidence within the housing market, and we now appear to be firmly following a positive trend of growth once again. It is reassuring to witness the market moving forward from what has been a very fluid few years, where household affordability has been at near breaking point for many people.
"As the benefits of lower inflation and interest rates fully start to bed in, Propertymark is confident there will be further market growth as the year plays out. We are, however, keen to see the UK Government’s housebuilding programme spring into action to help alleviate the ongoing mismatch between supply and demand, as it is essential to keep pace with an ever-growing population.”
CEO of Yopa, Verona Frankish, commented: “The property market really picked up the pace in August with respect to the annual rate of house price growth seen and there’s no doubt that this improving market sentiment has been spurred by the first cut to interest rates since 2020.
"Buyers are proceeding with a renewed level of confidence and with further interest rate cuts expected before the year is out, we anticipate that market activity and house prices will continue to improve over the coming months.”
Director of Benham and Reeves, Marc von Grundherr, commented: “House prices continue to climb on both a monthly and annual basis and so far, it’s been a very solid summer for the UK property market, with both buyer and seller activity levels continuing to improve.
"The monthly rate of house price growth did slow in August, but this was only to be expected given that it’s summer holiday season and the real proof in the pudding is the annual rate of growth, which was the strongest seen since the back end of 2022.”
CEO of Octane Capital, Jonathan Samuels, commented: “The housing market has certainly stabilised during the first half of this year with a hold on interest rates helping to reduce market uncertainty and we’re now seeing momentum start to build following the base rate reduction at the start of August.
"Of course, whilst positive for homebuyers, interest rates remain considerably higher than we’ve seen in recent years, so it’s certainly a case of not running before we can walk and not overborrowing prematurely based on hopes of future rate cuts.”