House price growth hit two-year high in August, says Halifax

Average UK house price growth edged up 0.3% in August to hit a two-year high, according to Halifax.

The banking firm’s latest house price index showed that prices were also up year-on-year by 4.3%, the highest rate of growth since November 2022.

A typical property in the UK now costs £292,505, which is the highest level since August 2022.

Amanda Bryden, head of mortgages at Halifax, said the strong annual rate of growth was “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,” she added, noting that homebuyer confidence had been buoyed by easing interest rates.

“That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years,” she said.

However, Bryden said affordability still retained a “significant challenge” for many buyers.

“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,” she said.

Maeve Ward, head of intermediary sales at Together, agreed that buyer and seller confidence would continue to improve, but said that further Bank of England rate cuts would “take longer to fall than initially predicted.

Meanwhile, Sara Palmer, distribution director at The Mortgage Lender, said activity in the coming months would be “bolstered by those trying to sell their properties ahead of the October budget to avoid paying the brunt of upcoming rumoured tax increases”.

“All of these factors are working together to create a busier-than-anticipated market especially as summer draws to a close which is helping to push prices up,” she said.