UK house price growth accelerates more than expected in October

The average UK house price grew faster than expected in October, Halifax data showed on Friday.

For October, the average price was £299,862, up 0.6% from September and 1.9% higher than a year ago. The changes beat the FXStreet-cited consensus, which was for an on-month increase of 0.1% and a 1.5% rise annually.

Prices in September had fallen 0.3% monthly and climbed 1.3% annually.

‘October saw the biggest monthly rise in UK house prices since January this year,’ said Amanda Bryden, head of mortgages at Halifax.

‘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.’

Bryden added: ‘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.

‘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.’

Northern Ireland saw the UK’s strongest annual price growth gain, over 8.0% over the past year. Prices were 4.4% higher in Scotland and 2.0% higher in Wales.

In England, the North East saw the highest annual growth rate of 4.1%. London and the South East saw prices fall slightly in October on an annual basis, by 0.3% and 0.1% respectively.

The average property in the capital now costs £542,273.

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