Annual house price inflation now stands at 3% following a 1.2% rise in prices in September, the latest figures from the Halifax reveal.
The Halifax House Price Index reports growth of 1.8% in house price inflation but says the annual figure of 3% is still well below last years growth figure of 20.5% for the year. The national average house price now stands at £168,299, says the Halifax.
There has been some good news however, the lender says the number of mortgage approvals for house purchase was 15% higher than in August 2004 marking the first time since this year that mortgage approvals have been higher than a year ago.
Overall the biggest gains in house prices have been in the North West (9.1%) and Yorkshire & Humber (8%). Meanwhile four regions have experienced a small drop in prices namely the East Midlands (0.4%), East Anglia (0.8%), South East (1.1%) and South West (1.1%).
Martin Ellis, chief economist at the Halifax, says the pick-up in monthly house price inflation in August and September is consistent with the rise in market activity over the past few months.
“Healthy household income growth and historically high levels of employment are supporting the housing market and the Bank of England's decision to cut interest rates in August also appears to have given the market a boost. Nonetheless, the reduction in economic growth this year and the continuing high level of house prices in relation to average earnings are expected to constrain housing demand and prevent a sustained surge in house prices," he adds.
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