Halifax has reported that house prices increased by 0.3% in August 2024, after the 0.9% rise in July.

This means that a typical property now costs £292,505 (compared to £291,585 in July), the highest since August 2022.

Year-on-year prices are up 4.3%, the strongest rate since November 2022.

Amanda Bryden, head of mortgages at Halifax, said: “House prices increased by +0.3% in August, following a rise of +0.9% in July, with the typical property now costing £292,505. Annual growth has risen to +4.3%, the strongest rate since November 2022, but this is due in large part to the comparison with weaker growth this time last year.

“Recent price 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.

“Such has been the resilience of house prices that the average property is now just £1,000 shy of the record high set in June 2022 (£293,507). While this is welcome news for existing homeowners, affordability remains a significant challenge for many potential buyers still adjusting to higher mortgage costs.

“However with market activity picking up and the possibility of further interest rate reductions to come, we expect house prices to continue their modest growth through the remainder of this year.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: “Lenders continue to reduce their mortgage rates, which is encouraging buyers to make their move. The Bank of England Governor’s comments about a more aggressive approach to rate setting should feed through to even lower mortgage pricing.

“Several lenders repriced downwards last week, including HSBC, NatWest, Barclays and Santander. Two-year fixes are now available from 3.84 per cent while the cheapest five-year fix is pegged at 3.68 per cent, which will prove to be more palatable for borrowers than some of the higher rates they have been paying recently.

“This ongoing rate war among lenders is great news for borrowers as there are some really compelling deals being launched, which will go some way to helping affordability.”