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| House prices close to record high, says Halifax | House prices close to record high, says Halifax |
| (about 1 hour later) | |
| The average UK house price came close to reaching a record high last month as falling mortgage rates helped to boost confidence among buyers, according to Halifax. | The average UK house price came close to reaching a record high last month as falling mortgage rates helped to boost confidence among buyers, according to Halifax. |
| The UK's largest mortgage lender said the average price hit £293,399 in September, just short of the record £293,507 reached in June 2022. | The UK's largest mortgage lender said the average price hit £293,399 in September, just short of the record £293,507 reached in June 2022. |
| Prices have now risen for three months in a row, Halifax said, as market conditions improve. | Prices have now risen for three months in a row, Halifax said, as market conditions improve. |
| "Mortgage affordability has been easing thanks to strong wage growth and falling interest rates," said Amanda Bryden, head of mortgages at Halifax. | "Mortgage affordability has been easing thanks to strong wage growth and falling interest rates," said Amanda Bryden, head of mortgages at Halifax. |
| "This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022." | "This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022." |
| Compared with a year ago, Halifax said house prices were up 4.7% - the fastest pace of growth since November 2022. | Compared with a year ago, Halifax said house prices were up 4.7% - the fastest pace of growth since November 2022. |
| Northern Ireland continues to see the strongest annual house price growth for any nation or region in the UK. | Northern Ireland continues to see the strongest annual house price growth for any nation or region in the UK. |
| Guy Gittins, chief executive of Foxtons, told the BBC's Today programme: "The market is recovering. | Guy Gittins, chief executive of Foxtons, told the BBC's Today programme: "The market is recovering. |
| "It certainly won't be the best year we've ever seen but each time we see a small interest rate drop, more buyers are returning from that backlog of last year." | "It certainly won't be the best year we've ever seen but each time we see a small interest rate drop, more buyers are returning from that backlog of last year." |
| Karen Noye, mortgage expert at Quilter, said: "Currently, some lenders offer deals around the 4% mark, a stark contrast to the 5% or higher rates seen in the immediate aftermath of the 2022 mini-budget and beyond. | Karen Noye, mortgage expert at Quilter, said: "Currently, some lenders offer deals around the 4% mark, a stark contrast to the 5% or higher rates seen in the immediate aftermath of the 2022 mini-budget and beyond. |
| "This reduction in rates has enabled buyers to secure larger mortgages, making previously unaffordable properties more attainable and boosting buyer confidence." | "This reduction in rates has enabled buyers to secure larger mortgages, making previously unaffordable properties more attainable and boosting buyer confidence." |
| However, Ms Noye added that the cost of borrowing was still out of reach for many, especially first-time buyers. | However, Ms Noye added that the cost of borrowing was still out of reach for many, especially first-time buyers. |
| On Monday, the average rate on a two-year fixed rate mortgage was 5.38%, according to the financial information service Moneyfacts. It said the average for a five-year fixed deal was 5.05%. | |
| Halifax said that despite recent cuts in mortgage rates, "housing costs remain a challenge for many". | Halifax said that despite recent cuts in mortgage rates, "housing costs remain a challenge for many". |
| According to the lender, the typical first-time buyer is now buying a property priced at £232,769, which is the highest price since May this year. | According to the lender, the typical first-time buyer is now buying a property priced at £232,769, which is the highest price since May this year. |
| However, this is still around £1,000 less than the average amount a first-time buyer was paying two years ago. | However, this is still around £1,000 less than the average amount a first-time buyer was paying two years ago. |
| Halifax's house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales. | Halifax's house price data is based on its own mortgage lending, which does not include buyers who purchase homes with cash, or buy-to-let deals. Cash buyers account for about a third of housing sales. |
| Ways to make your mortgage more affordable | |
| Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later. | |
| Move to an interest-only mortgage. It can keep your monthly payments affordable although you won't be paying off the debt accrued when purchasing your house. | |
| Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available. | |
| Read more here | |
| Get in touch | |
| How have you been affected by rising house prices? |