UK house prices grew in September on a quarterly basis by 1.2%, with annual growth also increasing 4.7%, the latest Halifax house price index reveals.

Compared to last month, the price of a UK property went up by 0.3%, with the average property now costing £293,399.

This represents the highest cost since June 2022.

Northern Ireland continues to record the strongest property price growth of any nation or region in the UK, rising by 9.7% on an annual basis in September.

The average price of a property in Northern Ireland is now £203,593.

House prices in Wales also recorded strong growth, up 4.4%, compared to the previous year, with properties now costing an average of £224,119.

Meanwhile, a typical property now costs £205,718, up 2.1% more than the year before.

The North West once again recorded the strongest house price growth of any region in England, up by 5.1% over the last year to £234,355.

London continues to have the most expensive property prices in the UK, now averaging £539,238, up 2.6% compared to last year.

This is still some way below the capital’s peak property price of £552,592 set in August 2022.

Halifax head of mortgages Amanda Bryden says: “It’s essential to view these recent gains in context. While the typical property value has risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months. Looking back two years, prices have increased by just +0.4% (£1,202).”

“Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. 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.!

“While improved mortgage affordability should continue to support buyer activity – boosted by anticipated further cuts to interest rates – housing costs remain a challenge for many. As a result we expect property price growth over the rest of this year and into next to remain modest.”

Fine & Country managing director Nicky Stevenson says: “UK house prices continued to edge higher in September — the strongest rate since November 2022 — signalling the start of the typical autumn market boost.”

“Though the Bank of England held interest rates steady at its most recent meeting, it signalled that borrowing costs are gradually on the path down from their highest levels since the 2008 financial crisis. And another cut is still being predicted towards the end of this year. “In response, lenders such as Nationwide, Halifax, and HSBC have lowered five-year fixed mortgage rates to below 4%. This easing of mortgage rates, along with banks increasing their lending capacity, is giving buyers renewed confidence.”

“While this is positive news for homeowners, affordability challenges persist for many potential buyers still adjusting to historically higher mortgage costs.”

“Despite recent signs of market stabilisation, elevated mortgage rates continue to lock many prospective buyers out of the market. While the average amount paid by first-time buyers is now around £1,000 less than two years ago, this demographic remains sensitive to borrowing costs.”

“With market activity picking up and the possibility of further rate reductions, modest house price growth is expected to continue through the rest of 2024. However, this growth may be uneven, with regional variations based on local demand and economic conditions.”

Foxtons chief executive officer Guy Gittins adds: Increased mortgage market certainty is allowing UK buyers to act with greater confidence and we’ve seen the rates available on many mortgage products continue to trend downwards since a hold on the base rate in September of last year.”

“Not only has this helped to accelerate the rate of house price growth being seen across the UK property market, but we’re now seeing transactional volumes climb as these sales make it over the line.”

“In fact, the latest government figures show that in August, the number of monthly transactions exceeded the 100,000 threshold for the first time since December 2022. A very positive sign indeed and a strong indication that the market is now returning to form.”