Average price in October surpassed previous peak

Average UK house prices roses for the fourth consecutive month in October, rising 0.2% according to Halifax.

The building society’s house price index for the month showed year-on-year prices were up 3.9%, although that represented a slight easing in growth from the 4.6% recorded in September.

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Halifax expects prices to keep growing at a modest pace into next year

The average house price in the UK now stands at £293,999, surpassing the previous peak set in June 2022.

“That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place,” said Amanda Bryden, head of mortgages at Halifax.

She said the market had been improving despite affordability challenges, with the number of new mortgages agreed recently reaching its highest level in two years.

“Looking ahead, borrowing constraints remain a challenge for many buyers. Following the budget, markets expect the Bank of England to cut rates more slowly than previously anticipated, which could keep mortgage costs higher for longer,” said Bryden. 

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“New policies like higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers might also affect demand.

“While we expect house prices to keep growing, it will likely be at a modest pace for the rest of this year and into next.”

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