UK house prices rose in October, up +1.1% on a monthly basis, marking the first rise in the cost of a typical UK home since March says Halifax’s latest House Price Index. Kim Kinnaird, Director, Halifax Mortgages, says: “Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale. This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand. While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures continue to be challenges for buyers.
“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. “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 prepandemic levels.” London continues to have the highest average house price in the UK, at £524,057, falling -4.6% over the last year.