Halifax has reported that house prices rose by 0.8% between August and September, following a 1.5% increase in August.
House prices in the last three months were 1.4% higher than in the previous three months (April-June).
This is the fastest price growth, on this measure, since February.
Meanwhile, prices in the three months to September were 4.0% higher than in the same three months a year earlier. The annual rate in September is higher than in August (2.6%) and at its highest growth rate since February.
Russell Galley, managing director, Halifax Community Bank, said: “The annual rate of growth has picked up for the second consecutive month, rising from 2.6% in August to 4.0% in September. The average house price is now £225,109 – the highest on record. House prices in the three months to September were 1.4% higher than in the previous quarter, the fastest quarterly increase since February.
“While the quarterly and annual rates of house price growth have improved, they are lower than at the start of the year. UK house prices continue to be supported by an ongoing shortage of properties for sale and solid growth in full-time employment. However, increasing pressure on spending power and continuing affordability concerns may well dampen buyer demand. There has been recent speculation on the possibility of a rise in the Bank of England base rate. We do not anticipate this will have a significant effect on transaction volumes.”
Jeff Knight, director of marketing at Foundation Home Loans, added: “Housing has been high on the political agenda these past two weeks, with both tenants’ rights and promises to boost the number of new builds taking centre stage. It is clear the continued lack of supply is not helping meet growing demand from first time buyers as well as families looking to expand their space. Certainly, the ongoing shortage of properties is the main reason behind the steady growth, and that growth does need to be controlled.
“Likewise, a renewed focus on developing the rental sector is needed, to ensure standards are maintained and, whether it’s to bridge the gap to ownership or not, tenants are not faced with limited options and landlords have full accessibility to all the sector has to offer.”