The average UK house price last month was just over £100 away from a record high, according to an index.
The typical property value in September was £293,399, just £108 below a record high of £293,507 set in June 2022, Halifax said.
House prices increased by 0.3% month-on-month in September, matching a rise seen in August.
Year-on-year price growth accelerated to 4.7%, from 4.3% in August.
In Northern Ireland, the annual growth was twice as high at 9.7%, with the average price now at £203,593, according to the Halifax index.
Amanda Bryden, head of mortgages at Halifax, said: “UK house prices climbed for the third month in a row in September, with a slight increase of 0.3%, or £859 in cash terms.
“Annual growth edged up to 4.7%, the highest rate since November 2022.
“This brings the average property price up to £293,399, just shy of the record high of £293,507 set in June 2022.
“It’s essential to view these recent gains in context. While the typical property value has risen by around £13,000 over the past year, this increase is largely a recovery of the ground lost over the previous 12 months.
“Looking back two years, prices have increased by just 0.4% (£1,202).
“Market conditions have steadily improved over the summer and into early autumn. Mortgage affordability has been easing thanks to strong wage growth and falling interest rates.
“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.
“While improved mortgage affordability should continue to support buyer activity – boosted by anticipated further cuts to interest rates – housing costs remain a challenge for many.
“As a result we expect property price growth over the rest of this year and into next to remain modest.”
The average amount paid by first-time buyers has increased by 4.2% over the past year, or £9,409 in cash terms, the report said.
This brings the typical first-time buyer property price up to £232,769 – the highest level since May 2024.
The amount is still around £1,000 less than the average amount paid by a first-time buyer two years ago, at £233,760.
Here are average house prices, followed by annual increases, according to Halifax. Regional changes are based on the most recent three months of approved mortgage transaction data.
East Midlands, £241,873, 3.1%
Eastern England, £333,042, 2.3%
London, £539,238, 2.6%
North East, £171,338, 2.4%
North West, £234,355, 5.1%
Northern Ireland, £203,593, 9.7%
Scotland, £205,718, 2.1%
South East, £387,638, 2.9%
South West, £303,747, 3.3%
Wales, £224,119, 4.4%
West Midlands, £255,148, 3.3%
Yorkshire and the Humber, £210,116, 4.3%
