Mortgage rates boost confidence, but affordability remains an issue, with the average price reaching £293,399, just £108 short of the June 2022 peak.
Halifax says house prices approached a record high in September, driven by falling mortgage rates.
Halifax noted that prices have risen for three consecutive months as market conditions improve. House prices have grown by 4.7% compared to last year, marking the fastest increase since November 2022. Northern Ireland leads the UK in annual house price growth across regions.
Despite these gains, affordability remains a significant challenge, particularly for first-time buyers. Halifax reports that the average first-time buyer is purchasing a property priced at £232,769, the highest figure since May. However, this remains around £1,000 lower than the amount typically paid two years ago.
Halifax’s data is based solely on mortgage lending, excluding cash purchases and buy-to-let transactions. Since cash buyers make up about a third of the market, these figures do not reflect their activity.
While falling mortgage rates have helped boost confidence, high borrowing costs keep home ownership out of reach for many, especially those entering the market for the first time.
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