Annual house price growth rose to 2.8% in the year to August, according to the latest UK House Price Index published by the Land Registry.

This was up from a revised estimate of 1.8% in the 12 months to July.

The latest movement took the average house price to £293,000 in August, which is around £8,000 higher than the same month in 2023.

Average house prices increased in England to £310,000 (2.3%), in Wales to £223,000 (3.5%) and in Scotland to £200,000 (5.4%). In Northern Ireland, the figures showed that the average house price increased in the year to Q2 2024 to £185,000 (6.4%).

Director of mortgage distribution at April Mortgages, Rachael Hunnisett, commented that the cost of borrowing beginning to decrease was “stimulating the housing market”.

“Buyers have returned to the market as the squeeze on household incomes has eased and mortgage rates have improved,” Hunnisett said.

“However, affordability remains an issue for borrowers particularly in London and parts of southern England where house price growth trails the rest of the UK. The high cost of ownership means that borrowers face an uphill challenge to meet lender’s affordability requirements.”

Managing director at RAW Capital Partners, Ben Nichols, added that the data indicates the market is “benefitting from a more relaxed economic environment”, but also warned that the upcoming Autumn Budget “adds complexity”.

“The upcoming Autumn Budget adds complexity with rumours of tax and regulatory reforms dominating the property press at present,” he said.

“However, it’s important to remember that the core fundamentals of the market – strong demand and limited supply – remain intact. Therefore, we do not expect any significant slowdown in activity following Rachel Reeves’ speech, as the outlook for the Bank of England’s base rate should have a greater influence on people’s plans.

“Under these conditions, the growth trajectory should persist, providing some enticing opportunities for investors, brokers, and lenders.”

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