House price inflation eased to 2.2% in August, having stood at 2.5% in the year to July, new figures from Halifax have indicated.

According to the latest Halifax House Price Index, prices still edged up on a monthly basis for the third time running in August by 0.3%, an amount worth £932.

This has taken the average property price to £299,331 – a new record high recorded by Halifax.

Head of Mortgages at Halifax, Amanda Bryden, commented that affordability “remains a challenge”, but added that there are “signs of improvement” for the housing market.

“Interest rates have been on a gradual downward path for nearly two years, and many of the most competitive fixed-rate mortgage deals now offer rates below 4%,” Bryden said.

“Combined with strong wage growth – which has outpaced house price inflation for nearly three years – this is giving more prospective buyers the confidence to take the next step. Summer is typically a quieter period for the market, so the recent rise in mortgage approvals to a six-month high is an encouraging sign of underlying demand.

“While the wider economic picture remains uncertain, the housing market has shown over recent years that it can take these challenges in its stride. Supported by improving affordability and resilient demand, we expect to see a slow but steady climb in property prices through the rest of this year.”

While overall prices across all properties have edged higher, Halifax’s data has shown that average property values for first-time buyers went down over the summer, a trend the group said would be “welcomed” by those looking to get on the ladder.

Bryden added that for first-time buyers who are able to overcome the hurdle of saving a deposit, “the numbers increasingly stack up”.

“The typical first-time buyer property now costs £237,577, down -0.6% since May,” she continued. “On a 95% LTV mortgage over 30 years, that could mean monthly repayments of around £1,179 compared to the average UK private rent of £1,343.”

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