The Halifax House Price Index for October reveals house prices rose by 0.6% – the fastest pace since January – and mortgage approvals have reached their highest level this year, which the building society says indicates resilient demand.
The house price growth is the fourth increase in the last five months, taking the average property price to £299,862. The annual rate of growth is at 1.9%, up from 1.3% in September.
‘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’, said Amanda Byrden, head of mortgages at Halifax.
And, while Bryden warned affordability remains a challenge and rising property prices can make moving home ‘feel like a stretch’, the market remains healthy. She added:
“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.”
In Wales, property values rose by 2.0% year-on-year to £229,558. In England, the North East recorded the highest annual growth rate, up 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.
“The Christmas rush to complete is on”
Verona Frankish, CEO, 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.”
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.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“October’s data from Halifax paints a picture of cautious resilience in the UK housing market. A +0.6% monthly rise, the strongest since January, and annual growth of +1.9% underscore that demand remains solid.
“While the upcoming autumn budget and the prospect of possible tax changes are creating a degree of hesitation, particularly at the top end of the market, the fundamentals remain steady. Mortgage approvals and transaction levels are both up year-on-year, reflecting the presence of serious, needs-based buyers who continue to move despite wider uncertainty.
“A 7% increase in the number of homes for sale compared with last year is helping to balance the market, giving buyers more choice and tempering the pace of price growth. Looking ahead, we expect affordability to gradually improve as wage growth continues and borrowing costs ease once the Bank of England begins to lower rates again. Overall, the market is showing cautious confidence, steady, not spectacular, but underpinned by genuine activity and improving fundamentals. This stability should give both buyers and sellers reassurance as we move towards the end of the year.”
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.”
