Halifax House Price Index September 2022

UK house prices increased 9.9% YoY in September according to mortgage lender Halifax.
On a monthly basis, prices decreased slightly by 0.1% in September (vs +0.3% in August).
The average UK property now costs £293,835.

House prices coming down from peak

Source: Halifax, IHS Markit

Key trends

The annual rate of house price growth dropped to +9.9%, from +11.5% in August, marking a return to single figures for the first time since January, indicating the housing market is entering a slower period.
The typical house price decreased slightly to £293,835 in September following a record high in August (£294,260), and after increasing for seven out of eight months to the end of July.
London continues to lag other UK regions, and the rate of annual house price inflation in the capital rose again by +8.1% in September, although not as much as in August (+8.8%). With a typical house price of £553,849, however, the average property price is London continues to be significantly higher than those in other parts of the country.

Outlook

Sharp rises in living costs, the prospect of interest rates increasing, and higher mortgage borrowing costs are all likely to exert further downward pressure on house prices in the coming months.
The Bank of England is set to continue raising interest rates to combat spiralling inflation, with markets pricing in the base rate to reach as high as 5.5% by the middle of 2023, pushing up mortgage costs.
How much people can afford on their monthly mortgage is a particularly important factor. With the cost shooting up, many people thinking of buying will rethink those plans, perhaps buying at a lower level or holding off altogether. With house price to income affordability ratios already historically high, a more challenging period should be expected.