Posted: 4th October 2024
Halifax Reports Strong House Price Growth Amid Easing Interest Rates
August, typically a quiet month for estate agents, defied expectations this year as easing interest rates prompted a surge in home relocations, according to Halifax.
Halifax reports that house prices are experiencing an annual increase of 4.3%, marking the strongest growth rate in nearly two years, with the average property now valued at £292,505.
This rise can be attributed, in part, to growing confidence among homebuyers, fueled by the reduction in interest rates. This newfound confidence is intensifying competition for available homes, leading to higher final sale prices.
However, the quarterly growth rate is more modest, standing at 0.8%, while the monthly increase is a slight 0.3%, reflecting a rise in house prices over the past month.
Amanda Bryden, Head of Mortgages at Halifax, notes, “The resilience of house prices is evident, as the average property is now just £1,000 short of the record high of £293,500 set in June 2022.”
“While this is encouraging news for current homeowners, affordability continues to pose a significant challenge for many prospective buyers who are still grappling with elevated mortgage costs.
“Nevertheless, with market activity on the rise and the potential for further interest rate reductions, we anticipate that house prices will maintain their modest growth for the remainder of the year.”
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