House prices close to record levels according to Halifax
UK house prices almost hit a record high last month, according to Halifax’s latest data.
The UK’s largest mortgage lender reported an average price of £293,399 in September, just shy of the £293,507 record from June 2022.
Key Insights from the Halifax House Price Index
Halifax’s September 2024 report shows a 0.3% month-on-month increase in UK house prices, bringing the average to £293,399. This marks a significant recovery from the dips in 2023 and early 2024. The annual growth rate now stands at 4.7%, the strongest since November 2022.
While the national average price is just below the June 2022 peak, the market has stabilised. Growth is driven by increased buyer confidence and better mortgage affordability. In Edinburgh, these trends are particularly relevant, given the city’s reputation as one of Scotland’s most desirable places to live, work, and invest.
What This Means for Edinburgh Buyers
House prices are rising across the UK, including in Scotland, which has seen a 2.1% year-on-year increase. Edinburgh continues to offer stability and growth potential. Buyers should take advantage of the current market conditions, especially as mortgage affordability improves. Interest rates have begun to ease, leading to a 43.4% increase in mortgage approvals compared to August 2023. This means prospective buyers in Edinburgh may find it easier to secure financing and benefit from the relatively modest price increases in the region.
First-time buyers should note that while the average home price has risen by 4.2% over the past year, the average price for first-time buyer properties is about £1,000 lower than two years ago. For Edinburgh’s first-time buyers, this presents an opportunity to enter the market at a time when prices, though increasing, are still within reach compared to historic highs.
Selling in Edinburgh: A Seller’s Market?
For those looking to sell property in Edinburgh, the current market offers several advantages. Steady price increases indicate a recovering market, making it a good time to list a property. While growth in Scotland remains more modest than in other parts of the UK, such as Northern Ireland and the North West of England, Edinburgh remains attractive to buyers due to its cultural appeal, high-quality schools, and strong local economy.
Sellers can capitalise on rising buyer confidence, with the number of agreed sales increasing according to the latest Royal Institution of Chartered Surveyors (RICS) report. With demand outpacing new instructions, Edinburgh sellers may benefit from competitive offers on their properties.
Outlook for the Rest of 2024 and Beyond
Halifax’s Q3 2024 report suggests that while house prices are expected to remain stable or grow modestly, buyers and sellers should manage their expectations. Mortgage affordability is likely to continue improving. This is supported by wage growth and lower interest rates. These factors could fuel further demand. However, housing costs remain a challenge for many. Price growth may be tempered in the short term.
In Edinburgh, we expect the housing market to remain resilient. There will be steady demand for properties in prime areas. Simpson & Marwick will continue to monitor these trends. We ensure our clients are well-positioned to make informed decisions, whether buying or selling.
Conclusion
The Q3 2024 Halifax house price data paints a positive picture of the UK property market, with sustained growth and improving conditions for buyers. Edinburgh’s housing market remains strong, and both buyers and sellers can benefit from the current trends. If you’re considering buying or selling in Edinburgh, now is a great time to contact Simpson & Marwick for expert advice and local market insights.
Contact Simpson & Marwick
For tailored property advice in Edinburgh, call Simpson & Marwick today or visit our website to learn more about how we can assist with your property needs.
