Property values bounce back in October
The latest Halifax Property Index shows that: –
House prices rose by +0.6% in October vs a fall of -0.3% in September
Fourth time in last five months that the average price has increased
Average property price now £299,862, edging up to a new record high
Annual rate of growth rises to +1.9% (up from +1.3% in September)
Mortgage approvals reach highest level this year, indicating resilient demand
Northern Ireland continues to lead annual house price growth in the UK
Here are some thoughts from the Industry:
Nathan Emerson, CEO of Propertymark:
“Any rise in house prices is a welcome sign of growing confidence in the UK housing market. It suggests that demand remains strong and that recent economic adjustments are beginning to bear fruit. This optimism also arrives at a time when the UK Government’s ambition to deliver 1.5 million new homes in England edges closer to becoming law, a potentially transformative milestone for supply.
“However, with Stamp Duty across England and Northern Ireland becoming a political flashpoint ahead of the Autumn Budget and a flurry of possible housing policy leaks, the drawn-out uncertainty risks unsettling both buyers and sellers.
“Housing is the heartbeat of the UK economy, so policymakers should be focused on delivering stability and reforms that encourage movement, investment, and growth, not hesitation.”
Daniel Austin, CEO and co-founder at ASK Partners:
“Today’s modest uptick in UK house prices offers a flicker of optimism, but growth remains muted as elevated borrowing costs continue to weigh on affordability. The Bank of England’s decision to hold rates at 4% provides little immediate relief, with stubbornly high fixed mortgage rates keeping pressure on homeowners and first-time buyers alike.
“With global volatility elevated and domestic policy direction uncertain ahead of the Autumn Statement, policymakers are holding back pending greater fiscal clarity. Inflation is unlikely to return to target this year, maintaining mortgage strain and dampening household confidence. As a result, the property market remains cautious, buyers are pausing, and developers are delaying projects amid uncertainty over taxation, build costs, and planning timelines.
“Proposed reductions in affordable housing requirements and efforts to streamline planning could boost scheme viability, yet high financing costs and tight margins continue to constrain delivery. Even so, resilient sectors such as co-living, build-to-rent, and storage remain attractive to investors, supported by robust fundamentals and a persistent supply-demand imbalance. For those seeking stability amid geopolitical risk and wider market volatility, UK real estate debt continues to stand out, offering capital preservation, steady income, and a degree of insulation from equity market swings.”
Verona Frankish, CEO of Yopa:
“Despite the economic headwinds and political noise ahead of the Autumn Budget, it seems as though the rush to complete before Christmas is well and truly on.
A late seasonal surge in market activity has not only helped the monthly rate of house price growth to rebound, but we’ve also seen the annual rate of increase strengthen as well.
This is the real evidence of improving market health and, all in all, we’re set to finish the year on a very strong footing, all things considered.”
Islay Robinson, CEO of Enness Global:
“The housing market has continued to demonstrate a calm determination and whilst we’ve seen a degree of hesitancy throughout the year, it seems as though buyers and sellers are throwing caution to the wind, with a late sprint to the finish line regardless of what might come in the Autumn Budget.
The desire to transact before year end is clearly outweighing any short-term political or fiscal uncertainty and it’s a strong finish to what has been a surprisingly resilient year for the market.”
Marc von Grundherr, Director of Benham and Reeves:
“The property market continues to display remarkable consistency given the wider economic backdrop, with the latest Halifax figures showing that the monthly rate of growth has bounced back following a marginal decline in September.
Buyers remain active, mortgage approvals are robust and, even with the Autumn Budget looming, many are pressing ahead to complete before Christmas.
The underlying message is one of steady resilience rather than dramatic recovery, and that’s no bad thing.”
Shepherd Ncube, Founder and CEO of Springbok Properties:
“While the latest data shows small but positive steps for the market, the reality on the ground remains far more testing for sellers.
Market hesitation is rife and whilst sellers are securing a fair price, it’s taking many months before they find a buyer willing to commit.
Those with ambitions of moving Christmas may well find themselves disappointed, even if they already have a buyer, as the overarching air of market instability is also leading to a greater propensity for sales to fall through at the final hour.”
Tom Brown, Managing Director, Real Estate at Ingenious:
“Today’s data underscores the resilience and continued appeal of the UK property sector. There’s clearly a significant and notable shortage of housing inventory across various price brackets and locations. Consequently, any decline in homeowner sales is likely counterbalanced by increased demand from renters and investors. This is a trend that is not going away. However, it’s crucial to recognise that the situation isn’t consistent nationwide or across different property pricing brackets. It’s helpful to delve into subsectors and regional dynamics when assessing opportunities, as a broad market view can be misleading. In the real estate sector, we’re seeing significant investment capital for assets for long-term rental. On account of their scale and buying power, these typically institutional investors face fewer disruptions than owner occupiers or small-scale Buy-to-let investors.
“At Ingenious, we continue to work closely with borrowers and investors, adapting to the dynamic market landscape and broader economic shifts, including those related to the climate crisis and changing lifestyles. We are expanding the reach of our development lending product to provide extended stabilisation terms for specialised developers in the rental sector. Furthermore, we’re introducing special lending terms for developers focused on reducing embedded carbon in their construction practices.”
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