UK house prices rise at fastest pace since January
- 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
Amanda Bryden, Head of Mortgages, Halifax, said:
“October saw the biggest monthly rise in UK house prices since January this year, with the value of
the average UK home increasing by +0.6% (£1,647). That brings the typical property price up to
£299,862 – the highest on record – while annual growth also increased to +1.9% (from +1.3%).
“Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the
market, with the number of new mortgages being approved recently hitting its highest level so far this
year.
“There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are
currently around 4% and likely to ease down further, but with property prices at record levels, moving
home can feel like a stretch.
“Rising costs for everyday essentials are also squeezing disposable incomes, which affects how
much people are willing or able to spend on a new property.
“Even so, while there has been some volatility, the market has proven resilient over recent months, as many buyers opt for smaller deposits and longer terms to help make the numbers work. With house
prices rising more slowly than incomes for almost three years now, we expect the trend of gradually
improving affordability to continue.”
Nations and regions house prices
Northern Ireland continues to post the strongest rate of annual property price inflation, with average
values up +8.0% over the past year (up from +6.4% last month). The typical home now costs
£219,646.
Scotland recorded annual price growth of +4.4% in October, up to an average of £216,051.
In Wales, property values rose +2.0% year-on-year to £229,558.
In England, the North East recorded the highest annual growth rate, with property prices rising by
+4.1% to £180,924.
London and the South East saw prices fall slightly in October on an annual basis, by -0.3% and –
0.1% respectively. The capital remains the most expensive part of the UK, with an average property
now costing £542,273.
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