LONDON, Oct 7 Reuters British house prices rose in September at the fastest annual pace since November 2022, according to data from mortgage lender Halifax, as expectations of further reductions in borrowing costs added to momentum in the property sector.

Halifax figures on Monday showed annual property prices increased by 4.7. That was up from 4.3 in August but below expectations of a 5.2 rise.

On a monthly basis, house prices rose by 0.3 in September, the same rate of increase seen in August.

A Reuters poll of economists had mostly expected an increase of 0.4 on the month.

Mortgage affordability has been easing thanks to strong wage growth and falling interest rates. This has boosted confidence among potential buyers, Amanda Bryden, head of mortgages, at Halifax, said.

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.

Other measures of Britain39;s property sector have also shown momentum picking up. Rival mortgage lender Nationwide last week reported the fastest pace of house price increases in annual terms since November 2022 in September.

The majority of economists polled by Reuters think the Bank of England will reduce interest rates at its next meeting in November after holding borrowing costs at 5 last month.

British Prime Minister Keir Starmer39;s Labour government, which won a landslide in July39;s election, has promised to…