Average UK house price nears £300,000 for the first time
October saw the biggest monthly rise in UK house prices since January this year, with the value of he average UK home increasing by +0.6% (£1,647), new data from Halifax shows.
That brings the typical property price up to £299,862 – the highest on record – while annual growth also increased to +1.9% (from +1.3%).
- Northern Ireland continues to post the strongest rate of annual property price inflation, with average values up +8.0% over the past year (up from +6.4% last month). The typical home now costs £219,646.
- Scotland recorded annual price growth of +4.4% in October, up to an average of £216,051.
- In Wales, property values rose +2.0% year-on-year to £229,558.
- In England, the North East recorded the highest annual growth rate, with property prices rising by +4.1% to £180,924.
- London and the South East saw prices fall slightly in October on an annual basis, by -0.3% and – 0.1% respectively. The capital remains the most expensive part of the UK, with an average property now costing £542,273.
“Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year,” said Amanda Bryden, Head of Mortgages at Halifax.
“There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.”
She noted that rising costs for everyday essentials are also squeezing disposable incomes, which affects how much people are willing or able to spend on a new property.
“Even so, while there has been some volatility, the market has proven resilient over recent months, as many buyers opt for smaller deposits and longer terms to help make the numbers work.
“With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue,” Bryden said.
