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.
House prices in the three months to September 2018 were 2.5% higher than in the same three months a year earlier, says Halifax