The average UK house price is near a record high as falling mortgage rates boost confidence among buyers, according to the Halifax.

The UK’s largest mortgage lender says the average house price of £293,399 is just £108 below the June 2022 record.

“Mortgage affordability has been easing thanks to strong wage growth and falling interest rates” says Amanda Bryden, head of mortgages at Halifax.

“This has boosted confidence among potential buyers, with the number of mortgages agreed up over 40% in the last year and now at their highest level since July 2022.”

House prices are up 4.7% on the year, although the lender says this is partially a reflection of the weakness of activity 12 months ago.

Foxtons chief executive Guy Gittins says: “Increased mortgage market certainty is allowing UK buyers to act with greater confidence and we’ve seen the rates available on many mortgage products continue to trend downwards since a hold on the base rate in September of last year.

“Not only has this helped to accelerate the rate of house price growth being seen across the UK property market, but we’re now seeing transactional volumes climb as these sales make it over the line.”

Karen Noye, mortgage expert at Quilter, comments: “Currently, some lenders offer deals around the 4% mark, a stark contrast to the 5% or higher rates seen in the immediate aftermath of the 2022 mini-budget and beyond. 

“This reduction in rates has enabled buyers to secure larger mortgages, making previously unaffordable properties more attainable and boosting buyer confidence.”