Despite “subdued” housing market, October has seen an increase in house prices of 1.1% compared to the previous month
House prices in October have increased for the first time since March this year, according to the latest Halifax house price index.
The mortgage lender said that the average house price has increased by 1.1% in October, to £281, 974, an increase of almost £3,000 compared to September.
Monthly comparisons of average house price changes, according to Halifax data
Compared to October last year, average house prices have decreased by 3.2%, but this has slowed compared to the 4.5% drop year-on-year registred in September.
The greatest fall in house prices was in South East England, where the average house price decreased by 6% to £374,066 in the last year.
This month’s Halifax House Price Index notes that despite a weakness in overall buyer demand, the first-time buyer market has held up relatively well.
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The latest data indicates that first-time buyer house prices have decreased by 2.4% annually, which is a smaller decline compared to the market generally (-3.2%) over the past year.
Kim Kinnaird, director at Halifax Mortgages, said: “Across the medium-term, with financial markets not anticipating a decline in the Bank of England’s Base Rate soon, we expect house prices to fall further overall – with a return to growth from 2025”.
She added: “The current picture should continue to be seen in the context of the longer-term house price trend as, on average, prices remain around £40,000 above pre-pandemic levels.”
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