House price growth remained stable in September in the UK, registering a 2.5 per cent annual increase. The estimated price of a UK home now is £225,995, according to the latest House Price Index from Halifax.

On a sequential basis also, house prices grew positively – in the latest quarter (July-September), they were 1.8 per cent higher than in the preceding three months (April-June), the third consecutive rise on this measure.

“The annual rate of growth is near the top of our forecast range of 0-3% for 2018, as a low supply of new homes and existing properties for sale, combined with historically low mortgage rates and a high employment rate, continue to support house prices,” Halifax said.

For instance, mortgage approvals showed a small rise in August. Bank of England industry-wide figures show that the number of mortgages approved to finance house purchases – a leading indicator of completed house sales rose to 66,440 in August from 65,156 in July. The figure is very close to the 5-year average approval rate of 66,550, but is 2,000 above the monthly average for the previous 12-month period of 64,638.

The number of completed UK home sales remains near the monthly average for the past 12 months. On a monthly basis, sales rose between July and August to 99,120. In the three months to August sales increased by 1.2 per cent from the previous three months.