The Halifax says house prices will grow at least modestly between now and the end of the year, despite a downbeat report on the market in September.
The average UK house price edged down by -0.3% (£794) in September, following a modest rise in August. The typical home now costs £298,184. Over the past 12 months prices have grown by +1.3%, the slowest annual rate since April 2024.
This slight monthly dip in house prices reflects a housing market that has remained broadly stable, prices are up +0.3% since the start of the year.
Amanda Bryden, head of mortgages at Halifax, says: “It’s important to remember that prices vary widely depending on characteristics like location and property type. As a result, many homes are available at a cost well below this headline figure. For example, for those looking to take their first step on the property ladder, the typical first-time buyer home costs £236,811, up +1.7% year on year, with pockets of even greater affordability to be found across different regions.
“While affordability remains a challenge, a relatively lower mortgage rate environment and steady wage growth have helped support buyer confidence.
“Although the broader economic outlook remains uncertain, with the affordability picture gradually improving, we continue to expect modest growth through the remainder of the year.”
The Halifax has also issued its latest nations and regions price data.
Northern Ireland once again leads the fastest annual property price inflation, with average property values up +6.5% over the past year (down from +7.9% last month). The typical home there now costs £216,496 – although prices remain well below the UK average.
Scotland recorded annual price growth of +4.5% in September to an average of £215,588. In Wales, property values rose a modest +1.9% year-on-year to £227,845.
In England, the North East, recorded the strongest annual growth with prices up +4.8% to £180,443, followed by the North West (+3.9).
The South West saw a second consecutive price fall by -0.2% over the past year (previously -0.7%) with prices now £303,067.
Meanwhile, prices are up only very slightly on the year in London (+0.6%) and the South East (+0.2%), with the capital the most expensive part of the UK, with an average property value of £543,497
