Positive summer reported for property market

Average UK house prices have edged up to hit a two-year high, says Halifax in its latest house price index. Year-on-year prices are up +4.3%, the strongest rate since November 2022, due in large part to the comparison with weaker growth this time last year. These rises build on a largely positive summer for the UK housing market.

Prospective homebuyers are feeling more confident thanks to easing interest rates. That optimism is reflected in the latest mortgage approval figures, now at their highest level in almost two years, adds Halifax.

Data from comparison website Moneyfacts shows average mortgage rates on the overall two- and five-year fixed-rate deals fell month-on-month by 0.21% and 0.18% respectively during September.

The traditionally busier Autumn market appears to have started early, says Rightmove, with many movers spotting a window of opportunity to act as mortgage rates trend downwards and property choice increases.

Exchange rates have been favourable for international buyers holding their wealth in US dollars, as the weak pound, combined with limited price growth at the top end of the market, offers relative value.