UK house prices continue their upward momentum with October marking the fourth consecutive month of growth, pushing the average property price to an all-time high of £293,999, according to the Halifax’s latest House Price Index. Join us as we look at some of the data from the report.
Key Highlights:
- Record high: The average UK house price reached £293,999, surpassing the previous peak set in June 2022 (£293,507).
- Fourth consecutive month of growth: October saw a +0.2% increase in house prices, contributing to the sustained growth over the past four months.
- Year-on-year growth: House prices are up by +3.9% from the previous year, though slightly down from the +4.6% growth rate observed in September.
- Regional insights: Northern Ireland leads with the highest annual growth rate, signalling unique investment opportunities outside of the traditionally strong regions.
October’s Halifax House Price Index has unveiled a resilient market with the average house prices reaching a new high of £293,999. Although price growth has levelled off since the pandemic’s dramatic 21 per cent increase, recent figures show a resilient upward trend, up 0.2 per cent from the previous month and an annual increase of 3.9 per cent.
With mortgage approvals at a two-year high and income growth on the rise, recent months reflect a clear shift in market sentiment. Head of Mortgages at Halifax, Amanda Bryden, noted: “The fact that house prices continue to rise shows resilience in the market.”
Regional performance in the spotlight
Northern Ireland leads in annual house price growth with a significant 10.2 per cent increase, bringing average prices to £204,242. The North West and Wales follow closely with gains of 5.9 per cent (£235,587) and 5.6 per cent (£225,543), respectively. The West Midlands and Yorkshire and the Humber also saw notable growth, with prices rising 4.7 per cent to £257,287 and 5.3 per cent to £211,629. This broader trend, where regions outside of southern England are pulling ahead, underscores the opportunities for property investors seeking growth potential in the UK’s more affordable markets.
Buyer sentiment and mortgage approvals on the rise
According to Halifax, improved buyer sentiment is partly due to stabilising mortgage rates, which have eased since spring. The number of new mortgages is now at its highest in two years, reflecting renewed buyer confidence as economic conditions improve, albeit gradually. Although higher interest rates have previously held back some potential buyers, recent approvals suggest that more households are now willing to enter the market despite these challenges.
Future outlook
While optimism around property investment remains high, economic adjustments, such as the anticipated reduction in mortgage rates may slow, Halifax’s property experts write. New fiscal measures, including increased stamp duty on second homes, could have implications for demand in the coming months. Bryden cautioned that, although the recent price trend is encouraging, “policy adjustments on additional properties and incremental changes in mortgage affordability could temper demand.”
Property investment opportunities
According to the report, property investors may see promising growth prospects, especially in areas outside London and the South East where affordability remains attractive and demand appears strong. As housing markets remain in flux, the October report underscores the importance of timing, strategic region-focused investment and an eye on upcoming regulatory adjustments that could reshape demand.
