UK house prices edged up by 0.8 per cent in September, according to the latest Halifax house price index.
The average UK house price is now £225,109.
This is the highest average house price recorded by Halifax, though the lender’s index produces lower averages than rival indices.
House prices rose 2.6 per cent in the year to September. Property prices in Q3 were up 1.4 per cent on Q2 and increased by 4 per cent compared to Q3 2016.
Halifax Community Bank managing director Russell Galley says: “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.”
Mortgage Advice Bureau head of lending Brian Murphy says: “Whilst many in the industry felt that the expected ‘Autumn Bounce’ – the anticipated windfall of stock typically seen in September which heralds one of the busier times of the year – had failed to materialise in many areas, leading to a continued shortage of stock and flat transaction volumes, it would appear that this same situation has underpinned values to the extent that growth is at the second highest level recorded so far this year.”
Octane Capital chief executive Jonathan Samuels says: “The price growth we’re seeing is bittersweet, driven by weak supply more than consumer confidence and economic strength.”