UK annual house prices rise at fastest pace since 2022

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According to new data published by mortgage lender Halifax, house prices in September rose faster than at any time since November 2022.

This momentum in the property sector is being largely attributed to expectations of new cuts in borrowing costs. The figures this week showed that annual property prices went up by 4.7%, an increase from 4.3% in August – albeit still shy of the predicted 5.2% rise.

According to lenders, the evidence indicates that, despite high housing costs, confidence is growing among buyers, with mortgage affordability boosted by falling interest rates and a benign trend in wage growth.

There is a widespread consensus that the Monetary Policy Committee will cut interest rates when it reconvenes in November after leaving them intact in September. The housing industry is also waiting to see what measures the government will take to meet its pledge to relax the planning system, thus enabling more construction. The shortage of supply is likely to keep prices high – in the medium term, at least.

If you are looking at investment planning in Cheshire, prices in the North West have gone up by 5% over the last 12 months, with the average UK home now valued at £293,399. This is just £100 shy of the record set in June 2022. While some analysts have cautioned that these gains have merely clawed back lost ground since the soaring interest rates of 2022, the underlying picture is understood to be healthy, with agreed mortgages up over 40% in the last year.

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