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. As market activity picks up and the possibility of further interest rate reductions looms, house prices are expected to continue their modest growth through the remainder of this year.
LonRes reports positive sentiment for the prime London sales market is returning but remains fragile. Activity in this sector remains significantly above pre-pandemic levels, with July recording 34.3% more sales than the 2017-2019 July average.
International buyers are important in this market, which means it is more susceptible to external factors. One of those factors is exchange rates. These have been favourable for buyers holding their wealth in US dollars, as the weak pound has combined with limited price growth to offer relative value.
