UK house prices saw a stronger-than-expected rise in October, reversing a dip in the previous month and demonstrating the market’s continued resilience despite affordability challenges.

Key Figures from Halifax Data:

• Monthly Rise: Prices rose by 0.6% in October, significantly surpassing forecasts of a 0.1% rise.
• Average Price: The average property price now stands at £299,862.
• Annual Growth: Prices are 1.9% higher than they were a year ago.

Market Commentary:

Amanda Bryden, Head of Mortgages at Halifax, noted that the rise represented the biggest monthly increase since January, driven by surprisingly strong buyer demand coming into the autumn. This is evidenced by the recent number of new mortgage approvals hitting its highest level so far this year.

Affordability & Resilience:

Despite the positive movement, affordability remains a concern for many, with house prices at record levels and high costs for everyday essentials squeezing disposable incomes. However, the market has proven resilient as:

• Buyers are increasingly opting for smaller deposits and longer mortgage terms to make purchases feasible.
• Halifax expects the trend of gradually improving affordability to continue, as house prices have been rising more slowly than incomes for nearly three years.