UK house prices are on the rise again, creeping closer to the all-time highs we saw back in 2022. But what does this mean for those looking to buy or sell?

The average UK house price in August reached £292,505, according to new figures from Halifax. That’s a jump of 0.3% from July and a significant 4.3% higher than this time last year – the biggest annual leap since November 2022.

So, why are prices rising?

Experts are pointing to a few key factors:

• Interest rate relief: After months of hikes, the Bank of England finally hit the brakes on interest rate rises, offering some much-needed breathing room for mortgage holders.
• Mortgage approvals surge: More people are getting the green light for mortgages, with approvals hitting a near two-year high. This suggests growing confidence in the market.
• Supply and demand: There are still more buyers than sellers out there, keeping the market competitive and pushing prices upwards.

Regional Roundup

The property market is looking pretty buoyant across the UK:

• Northern Ireland: The region with the biggest grin, boasting a 9.8% annual house price increase, bringing the average property price to £201,043.
• Wales: Hot on Northern Ireland’s heels with a 5.5% surge, pushing average prices to £224,433.
• Scotland: More moderate growth here, with a 1.7% rise bringing the average price to £205,144.
• England: The North West takes the crown for the fastest-growing region in England, with prices up 4% to an average of £232,917.
• London: Unsurprisingly, the capital remains the priciest place to buy, with an average price tag of £536,056, a 1.5% increase from last year.

What do the experts think?

Amanda Bryden, from Halifax, says these rising prices are good news for those already on the property ladder but acknowledges that affordability remains a challenge for many would-be buyers. She predicts continued modest growth for the rest of the year.

Tom Bill, a property expert at Knight Frank, suggests that the market’s strength contradicts the government’s downbeat economic outlook. He believes that falling inflation and declining mortgage rates will fuel demand and activity this autumn.

Other industry voices, like Nathan Emerson from Propertymark, echo the sentiment of a recovering market, urging the government to boost housebuilding to meet growing demand. Verona Frankish, CEO of Yopa, is particularly optimistic about the impact of potential further interest rate cuts, suggesting they could supercharge market activity in the coming months.

What does this mean for you?

Whether you’re a seasoned homeowner or a first-time buyer, these trends are important to watch. While rising prices might make it tougher to get on the property ladder, it’s not all doom and gloom. Experts seem to agree that the market is stabilising and even poised for further growth, so staying informed and seeking expert advice will be key to navigating the months ahead.