UK house prices climbed at the fastest pace in almost two years last month and within touching distance of record highs.
A third successive month of increases saw prices jump by 4.7% to an average £293,399, marking the fastest growth since November 2022, according to lender Halifax.
This meant average house prices were around £1,000 off the record set in June 2022.
“Market conditions have steadily improved over the summer and into early autumn,” Halifax mortgage head Amanda Bryden commented.
Falling interest rates and strong wage growth have supported buyers, she added, driven by the Bank of England’s initial base rate cut in August and coinciding reductions in mortgages.
“While improved mortgage affordability should continue to support buyer activity - boosted by anticipated further cuts to interest rates - housing costs remain a challenge for many,” Bryden said.
“As a result, we expect property price growth over the rest of this year and into next to remain modest.”
Month-on-month, prices increased by 0.3%, led by growth in Northern Ireland, while property costs in Scotland ticked up at the slowest rate.