House Prices Rise Again for Third Month Straight in September

We’re always keenly keeping our eye on house prices across the UK, and it seems like they’re on the up again. The average house price in the UK rose for the third month in a row in September, according to the mortgage lender, Halifax.  

The 0.3% rise means that in total, house prices are thought to have gone up 4.7% over the past year. In terms of cash, that brings the average value of a home in the UK to £293,399. The latest jump is just £108 less than their all-time high of £293,507, which they reached in June 2022.  

Why have house prices risen?  

There are a few reasons house prices are rising again. One would be that the Bank of England recently lowered the base rate for the first time in a while. And although in their last meeting, they voted to keep the base rate steady, the previous drop was a good indication for the market. So, as more people enter the market, there’s more demand for homes, which can mean prices go up too. 

Another factor, according to the lender, is rising pay making houses more affordable. And with more disposable income, some are looking to spend that money on a higher priced home. 

And keep in mind, although these factors mean prices are increasing, a lot of the growth is just house prices getting back to the heights they had previously reached in 2022. Still, it’s a good sign that there’s an overall boost in confidence in the housing market. 

What does an increase in house prices mean for you?  

Well, the housing market tends to move in seasons. And, whilst spring and early summer tend to be the hottest months for selling – Autumn's not to be overlooked, with September usually bringing both falling leaves and a rise in property prices. So, if you’re looking to buy a new place, or are thinking of selling your home, now could be a good time.  

There’s news for first-time buyers too, as the lender notes they’re paying more for homes than they used to. All in, about 4.2% more than last year, with that first step onto the property ladder costing around £9,409 more in cash terms. Don't let that put you off, though. There are still plenty of deals to be found.  

The rise means a first home costs about £232,769 on average. That’s the highest it’s been since May 2024. But still, it’s around £1,000 less than that first-time buyers were shelling out two years ago – which was about £233,760. But as we’ve seen these past couple of years – house prices fluctuate! While we’d all love to get a glimpse of that crystal ball to see what they'll do, getting onto the property ladder really comes down to what’s best for you and your circumstances.  

What’s happening with house prices in your area?  

So, are you curious about what homes near you are selling for? Whether you’re prepping your finances for a move in the near future, or are just feeling nosey about your neighbours’ property prices – check out our House Price Index tool. It analyses how much property in your area has risen or fallen in value over the last year.  

And if you’re ready to put your home on the market, you can book a free house valuation to get an accurate idea of what you could sell for, from one of our expert local estate agents. Whilst you’re at it, why not take a peek at properties for sale in your desired area? It never hurts to look!