UK house price rises picking up, says Halifax…

houses in London

House prices across the UK have jumped by an average of 4% in the year to September, according to Britain’s largest lender, the Halifax.

The rate indicates a pick-up from August, when the Halifax said prices were rising at an annual pace of 2.6%.

The Halifax said the average price of a house or flat in the UK had now risen to a new high of £225,109.

A shortage of properties for sale and growth in full-time employment was supporting prices, it said.

“However, increasing pressure on spending power and continuing affordability concerns may well dampen buyer demand,” said Russell Galley, the managing director of Halifax Community Bank.

Rival lender Nationwide has said prices in the year to September rose by 2%.

House price chart

The Halifax figures are not broken down by region, but other research has indicated that while house price growth is slowing in the south of England, it is rising in parts of the Midlands and the North.

Between August and September, prices rose by 0.8%, the Halifax said, compared to a monthly rise of 1.5% in the previous month.

The 4% annual rise in house prices is calculated by comparing the three months to September with the same three months last year.