House prices increased by 0.3% in August, following a rise of 0.9% in July, with the typical property now costing £292,505.
These figures are from the Halifax.
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.
Amanda Bryden, Head of Mortgages at Halifax, says: “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.”
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 1.5% compared to last year.
