Property prices reach two-year high

Annual growth in property prices has hit a near two-year high in each of the last two months.

Property prices reached a two-year high in August with the recent interest rate cut increasing confidence among homebuyers, according to the Halifax, the UK's largest mortgage lender.

Prices increased by 4.3% compared to August last year, which took the average price of a property to £292,505.

Buyers have been boosted after the Bank of England reduced interest rates at the beginning of August, making the first interest rate cut for four years. House prices are now "just shy" of the record reached in June 2022 when they hit £293,507.

Although this is good news for homeowners, it's not so welcome to buyers and particularly first-time buyers with no equity behind them, meaning that affordability remains a significant challenge for many potential buyers.

Despite the cut in UK interest rates, they are still at their highest level since 2008, with average two-year fixed rate mortgages having fallen from 5.77% to 5.54%.

The Bank of England is expected to cut interest rates again this year, although it is not clear when. The Bank's next meeting is on Thursday, 19 September.

It's also worth remembering that Halifax's figures only account for buyers with mortgages and don't include those who purchase homes with cash or buy-to-let deals. Cash buyers account for around a third of housing sales.

If you are thinking about letting or selling your property, or are looking to buy either on- or off-market, please contact us on 0161 511 5339 or complete our contact form.