The average UK house price came close to reaching a record high last month as falling mortgage rates helped to boost confidence among buyers, according to Halifax.
The UK’s largest mortgage lender said the average price hit £293,399 in September, just short of the record £293,507 reached in June 2022.
Prices have now risen for three months in a row, Halifax said, as market conditions improve.
“Mortgage affordability has been easing thanks to strong wage growth and falling interest rates,” said Amanda Bryden, head of mortgages at Halifax.
“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.”
Compared with a year ago, Halifax said house prices were up 4.7% – the fastest pace of growth since November 2022.
Northern Ireland continues to see the strongest annual house price growth for any nation or region in the UK.
Guy Gittins, chief executive of Foxtons, told the BBC’s Today programme: “The market is recovering.
“It certainly won’t be the best year we’ve ever seen but each time we see a small interest rate drop, more buyers are returning from that backlog of last year.”
Karen Noye, mortgage expert at Quilter, said: “Currently, some lenders offer deals around the 4% mark, a stark contrast to the 5% or higher rates seen in the immediate aftermath of the 2022 mini-budget and beyond.
“This reduction in rates has enabled buyers to secure larger mortgages, making previously unaffordable properties more attainable and boosting buyer confidence.”
However, Ms Noye added that the cost of borrowing was still out of reach for many, especially first-time buyers.
This article was originally published at www.bbc.com
