House prices have risen for the first time in six months, according to new data from The Halifax.
It was revealed in The Halifax’s October House Price Index that house prices were up 1.1% – making it the first increase since March.
According to the data, the increase means that the typical UK home now costs £281,974 – up around £3,000 on the previous month.
Kim Kinnaird, director, Halifax Mortgages, said:
“UK house prices rose in October, up +1.1% on a monthly basis, breaking a run of six consecutive monthly falls. The average house price is now £281,974 – an increase of almost £3,000 compared to the previous month. On an annual basis, prices are down -3.2%, though the decline was at a slower pace than we saw in September (-4.5%).
“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, which remains weak overall.
“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.“
However, on an annual basis, house prices are still down by -3.2%.
Ms. Kinnaird 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.
“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.”
First-time buyer market
According to The Halifax, despite the overall weakness in buyer demand this year, the first-time buyer market has held up well.
First-time buyers are still eager to get onto the property ladder, and many are keen to buy their first home as rental prices continue to rise.
Further reading
Purchases – Oakwood Property Solicitors
House prices fall across 80% of the UK, figures show – Oakwood Property Solicitors
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