UK property prices increased for the third month in a row in August, setting a new record as the market gains momentum.
Prices rose by 0.3% compared with July, following a 0.4% increase the previous month and a 0.1% rise in June, bringing the average home value to £299,331.
The monthly rise was stronger than the 0.1% economists had predicted.
However, annual growth slowed to 2.2%, down from 2.5% in July, according to Halifax. Analysts had anticipated a 2% increase for August.
“This year, the housing market has remained stable,” said Amanda Bryden, Halifax’s head of mortgages. “Since January, prices have climbed by less than £600, reflecting a steady market despite broader economic challenges."
“Although uncertainty persists in the wider economy, the housing market has demonstrated resilience in recent years when faced with such pressures.”
Despite the national upward trend, prices in the south-west of England dropped by 0.8% over the past year, marking the first regional decline since the east of England recorded a fall in July 2023.
Northern Ireland continues to see the strongest growth, with prices up 8.1% annually – though this was a slight slowdown from the 9.3% recorded the previous month.
Scotland experienced a 4.9% rise in property values over the past year, while Wales saw a 1.6% increase.
London’s prices remained steady, growing by 0.8% annually, with the average property costing £541,615 – the highest in the country.
“With higher listing numbers, more sales agreed, and increased stock levels compared to last year—along with some banks providing support for first-time buyers—the market appears robust,” said Nathan Emerson of Propertymark.
However, Emerson noted that proposed changes to stamp duty and potential tax adjustments for landlords could lead some buyers to postpone moving plans.
“A potential stamp duty reform might influence buyer activity, possibly slowing the usual seasonal increase in transactions until the autumn budget becomes clear,” added Verona Frankish of Yopa.
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