House prices rose by 4.3% in August compared to the same period a year ago, marking the highest level of annual growth since November 2022.
Monthly prices rose by 0.3% in August, following an increase of 0.9% in the previous month.
Sara Palmer, dstribution director at The Mortgage Lender (TML), said: “Unlike recent house price indicators, the Halifax HPI shows an increase in house prices year on year as activity in the market heats up.
“It seems those waiting out for better deals have finally struck gold, making the most of the flurry of mortgage rate cuts by lenders, with the Bank of England reporting the highest mortgage debt since November 2022, with individuals borrowing £2.8bn in July.
“Activity in the housing market may also be bolstered by those trying to sell their properties ahead of the October budget to avoid paying the brunt of upcoming rumoured tax increases.
“All of these factors are working together to create a busier-than-anticipated market especially as summer draws to a close which is helping to push prices up.”
Halifax’s index is different from other indices, as the Office for National Statistics said house prices fell by 1.4% in 2023, while Nationwide said house prices rose by 2.4% in the year to August 2024.
Jason Tebb, president of OnTheMarket, said: “Although August is traditionally a quiet time of year for the housing market, agents were busy with buyers and sellers encouraged to act by the long-awaited rate cut from the Bank of England.
“This uptick in activity and interest has been reflected in average house prices, which presents a challenge for buyers.
“Affordability continues to be an issue, even though lenders have been trimming their mortgage rates, and buyers aren’t ready or able to pay silly prices.”