This made for the largest monthly increase seen since October 2022, with UK house prices rising by 0.6% m/m. This increase makes the average price of a home in the UK an all-time high of £299,862. The annual increase is 1.9%, well above predictions that expected a weak 1.5% bump. This increase comes after a small dip of 0.3% in September, an encouraging sign of recovery for the housing market.
Recent statistics suggest that buyers are beginning to reignite their interest. This is all despite the fact that major speculation looms over various tax increases ahead of the budget release on November 26. House price index about to record largest month-to-month increase on record. That increase marks the quickest rate of expansion we’ve seen since January.
Amanda Bryden, mortgage director at Halifax, said today’s figures show a “noticeable pick-up in demand for housing”. She stated, “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.”
Despite the positive momentum, Bryden noted the challenges prospective homebuyers face, as record-level property prices can make moving seem daunting for many. She remarked, “Rising costs for everyday essentials are squeezing disposable incomes, which affects how much people are willing or able to spend on a new property.”
It is like the old British cliché—the housing market is unbelievably resilient. Currently, average fixed mortgage rates are 4%. Some experts are already predicting these rates to moderate even more in the months ahead, possibly sparking another wave of home-buying activity.
“Despite this, although there has been volatility the market has shown strong resilience over the last five months,” Bryden continued. This resiliency has been a boon as the market continues to shape itself around external pressures and unknowns.
Matthew Thompson, an industry expert, observed that October’s property market appeared calmer as many buyers opted to pause their purchasing decisions pending the upcoming budget statement. He pointed out that some of the industry’s analysts are projecting an uptick in home-buying activity as early as December.
The combination of rising demand and easing mortgage rates could signify a positive shift for potential homebuyers looking to enter the market. House price increases have lagged behind income increases for almost three years. Bryden expects that trend to continue with the result of significantly improving affordability over time.