THE property market is experiencing a resurgence of confidence as UK house prices approach record highs.

According to the Halifax, the nation’s largest mortgage lender, average house price reached £293,399 in September.

This is just shy of the £293,507 peak recorded in June 2022, signalling a robust recovery in the housing sector.

Estate agents report that Henley’s sought-after properties are seeing increased interest, mirroring the national trend of rising prices for three consecutive months.

Amanda Bryden, head of mortgages at Halifax, attributes this positive shift to improving market conditions. She said: “Mortgage affordability has been easing thanks to strong wage growth and falling interest rates.”

The number of mortgages agreed has surged by more than 40 per cent in the past year, reaching levels not seen since July 2022. This uptick in activity has been particularly noticeable in desirable areas where the combination of picturesque surroundings and proximity to London continues to attract buyers.

Compared to last year, UK house prices have climbed by 4.7 per cent, the fastest growth rate since November 2022.

While this partly reflects the subdued market conditions of a year ago, it represents a significant rebound, with the typical property value increasing by approximately £13,000 over the past 12 months.

Guy Gittins, chief executive of Foxtons estate agents, said: “The market is recovering. Each time we see a small interest rate drop, more buyers are returning from that backlog of last year.”

This sentiment is echoed in Henley, where estate agents report increased viewings and offers on prime properties. However, challenges remain, particularly for first-time buyers.

Karen Noye, a mortgage expert at Quilter, said borrowing costs still pose a barrier for many. The average rate for a two-year fixed mortgage stands at 5.38 per cent, with five-year fixed deals averaging 5.05 per cent, according to Moneyfacts.

In Henley, these challenges are particularly acute. However, agents report a growing interest from buyers looking to relocate from London, attracted by the town’s quality of life and relative value compared to the capital.