House prices experienced the biggest monthly rise since the start of the year during October, Halifax has revealed.
Halifax’s House Price Index showed house prices rose by 0.6 per cent last month, bringing the typical property price up to £299,862, the highest on record.
The index found the change in house prices represented a 0.5 per cent increase on a quarterly basis and a 1.9 per cent increase on an annual basis.
Halifax head of mortgages, Amanda Bryden, pointed out that demand from buyers held up well coming into the autumn as, despite a degree of uncertainty in the market, the number of new mortgages being approved recently hit its highest level so far this year.
However, she acknowledged that affordability remains a challenge for many, pointing out that average fixed mortgage rates are around 4 per cent and likely to ease down further.
“With property prices at record levels, moving home can feel like a stretch,” she explained.
Meanwhile, Knight Frank head of UK residential research, Tom Bill, said: “Stable mortgage rates have supported demand in recent months and the bank rate is now on a downward path.
“But a tax-raising Budget will curb buying power and weigh on sentiment, keeping a lid on housing market activity next year.”
Regional variance
The index also discovered a regional variance, with Northern Ireland continuing to post the strongest rate of annual property price inflation.
It detailed that average values were up 8 per cent over the past year in the region, compared to 6.4 per cent last month.
As a result, the typical home now costs £219,646 in Northern Ireland.
Meanwhile, Scotland recorded annual price growth of 4.4 per cent in October, up to an average of £216,051.
Similarly, in Wales, property values rose 2 per cent year-on-year to £229,558.
Additionally, in England, the North East recorded the highest growth rates, with property prices up 4.1 per cent to £180,924.
London and the South East saw prices fall slightly in October on an annual basis, by 0.3 per cent and 0.1 per cent respectively.
The capital remains the most expensive part of the UK, with an average property now costing £542,273.
tom.dunstan@ft.com
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