UK house prices have reached a two-year high, with the average price of a house sold in August rising to £292,505, just £1,000 shy of the record high set in June 2022. This increase is attributed to recent cuts in mortgage rates and easing interest rates, making it easier for buyers to afford homes. Halifax’s monthly gauge of the housing market also shows a 0.3% increase in August, following a 0.9% rise in July. On an annual basis, prices rose by 4.3%, the strongest year-on-year rise since November 2022. Northern Ireland leads the way with the highest annual house price growth at 9.8%, followed by Wales at 5.5%.
Despite the positive news, affordability remains a challenge for many potential buyers, with a significant adjustment to higher mortgage costs. Looking ahead, Halifax predicts that house prices will continue to rise through the remainder of the year. The Bank of England is expected to cut interest rates further this year, which could stimulate the housing market even more. The strong annual growth in house prices largely reflects the base impact of weaker prices from a year ago. The housing market is seen as on the road to recovery, with market activity picking up and the possibility of further interest rate reductions to come. Overall, the UK property market is showing signs of confidence and growth, with the potential for continued improvement in the future.
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