UK house prices have surged close to record highs, with the average price reaching £292,505 in August, just £1,000 shy of the June 2022 peak. This marks a 4.3% annual increase, the highest since late 2022, fueled by reduced mortgage rates and growing buyer confidence. Experts predict further price rises in September as the demand for homes remains strong, partly driven by upcoming interest rate cuts. Construction activity has also expanded, signaling a boost to the government's housing initiatives. However, while affordability may improve due to lower borrowing costs, rising rents continue to challenge first-time buyers. Overall, the housing market outlook remains cautiously optimistic, with expectations of solid price gains in the coming years.