This marks a 3.9% rise in prices compared to the previous year, continuing the trend of increasing costs seen across the property market
UK house prices hit a record high in October, with the typical property costing £293,999 on average, shows the latest data from the Halifax House Price Index.
This marks a 3.9% rise in prices compared to the previous year, continuing the trend of increasing costs seen across the property market. On a monthly basis, house prices rose by 0.2%, surpassing the previous high set in June 2022.
The data reveals a diverse picture of the housing market across different regions. Northern Ireland continues to lead the UK in terms of property price growth, with prices jumping by 10.2% year-on-year in October. The average price of a home in Northern Ireland sat at £204,242.
Wales also recorded growth, with house prices rising by 5.6% from the previous year, bringing the average price to £225,543. Scotland saw a more modest increase of 1.9%, with the typical property costing £206,480.
The North West of England remained the region with the strongest growth in England, with prices up by 5.9% to £235,587. Meanwhile, London, despite having the highest average house prices in the UK, saw a more moderate rise of 3.5%, bringing the average property price to £543,308.
Amanda Bryden, head of mortgages at Halifax, pointed to a recovery in market activity despite ongoing affordability concerns.
Despite the affordability challenge, market activity has been improving, she said.
The number of new mortgages agreed recently touched its highest level in two years. This aligns with average mortgage rates declining steadily since spring — now more than 160 bps lower than in summer 2023 — along with continued positive income growth.
However, Bryden warned that borrowing constraints remain a significant barrier for many potential buyers.
Looking ahead, borrowing constraints remain a challenge for many buyers, she said.
Following the budget, markets expect the BoE to cut rates more slowly than previously expected, which could keep mortgage costs higher for longer. New policies such as higher stamp duty for second-home buyers and a return to previous thresholds for FTBs might also affect demand, she said.