UK house prices rose 0.3% in August, and according to new Halifax data, the average is now within £1,000 of November 2022’s peak £292,505.
UK house prices are up 4.2% over the past year after the reduction in mortgage rates spurred market activity.
“We are continuing to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the rest of the year. The market certainly appears to be showing signs of resilience,” said Daniel Austin, CEO and co-founder at ASK Partners.
Interestingly, London’s house price appreciation lagged the wider UK market with just a 1.5% rise in prices over the last year.
Homeowners happy with a strong housing market could have further good news if Labour’s proposed plans to boost the housing market have the desired effect.
“Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system, and it is likely that initiatives announced in the coming months will give the market a further boost,” Daniel Austin said.
Although the market is improving, a number of factors are weighing on it, preventing an out-and-out bonanza.
“There are still some headwinds to navigate,” said Sarah Coles, head of personal finance, Hargreaves Lansdown.
“The fact that prices are so high will mean some people are simply priced out of the market. This is particularly the case while mortgage rates remain higher than we’ve seen for years. We’re not expecting any immediate dramatic movements from the Bank of England, so this could endure for months to come. There’s also likely to be a slackening in demand from buy-to-let investors, who may take fright over Budget-related speculation that capital gains tax could be set to rise”