9:46 AM, 7th November 2024, About 3 hours ago
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The average UK house price edged up 0.2% in October despite the economic uncertainty, marking the fourth consecutive monthly increase, Halifax reveals.
It means a typical property price has reached a new record high of £293,999.
The previous peak of £293,507 was set in June 2022.
While year-on-year prices rose 3.9%, this represents a slight easing from September’s 4.6% annual growth.
Amanda Bryden, the head of mortgages at Halifax, said: “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.
“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a 0.2% increase overall.
“That’s a significant slowdown compared to the 21% rise we saw in the equivalent period from January 2020 to the summer of 2022.”
She added: “Despite the affordability challenge, market activity has been improving.
“The number of new mortgages agreed recently reached its highest level in two years.
Ms Bryden says that house prices will continue growing for the rest of 2024 and into next year at a modest pace.
Northern Ireland continues to lead the UK in property price growth, with a 10.2% annual increase in October. The average home price there is now £204,242.
Wales also saw significant growth, with a 5.6% year-on-year increase, pushing the average house price to £225,543.
Scotland recorded a more modest 1.9% rise, bringing the average property price to £206,480.
In England, the North West region experienced the strongest growth, with a 5.9% increase, setting the average price at £235,587.
London remains the most expensive region, with an average house price of £543,308, up 3.5% year-on-year.
Sarah Coles, the head of personal finance, Hargreaves Lansdown, said: “House prices finally inched over their pandemic peak, hitting a new record high.
“Pre-Budget worries prompted a rash of ‘everything must go’ house sales.
“These were released to legions of buyers clutching new, cheaper mortgages.”
She adds: “October saw a flurry of landlords and second property owners rushing to get in ahead of the Budget, just in case the government decided to hike capital gains tax for property sales.
“Meanwhile, cheaper mortgages persuaded more buyers it was time to take the plunge.
“There are some signs of more uncertainty in the immediate future though.”
Nathan Emerson, the chief executive of Propertymark, said: “Following the recent Budget there is potential the housing market may see an increased momentum across the winter months, as buyers potentially look to make their move ahead of proposed Stamp Duty increases from 1 April 2025.
“Increases will impact buyers across England and Northern Ireland, with some seeing Stamp Duty costs typically increase by around £2,500.”
He added: “However, it remains important to view the wider picture and that continued house price growth, even in the short to medium term, will help offset such tax expenditures for the highest percentage of those looking to purchase after the threshold change date.”
Tomer Aboody, a director of specialist lender MT Finance, said: “A confident finish to 2024 is in evidence, with buyers taking advantage of lower rates and lower inflation.
“As the Budget settles into the market, we expect interest rates to stay put for longer rather than decrease, which potentially will affect the positive upward trend going forward.”
Jeremy Leaf, a north London estate agent and a former RICS residential chairman, said: “Worries about the Budget did create some uncertainty among our buyers and sellers but many pressed the pause, rather than the stop, button.
“The underlying feeling is that interest rates will remain fairly stable or even drop a bit over coming months, which has underpinned confidence and activity.”
