0:02 AM, 7th November 2025, About a month ago
Text Size
Categories:
House prices have risen at their fastest rate since the beginning of the year, as property values hit record highs.
The latest Halifax House Price Index shows that prices rose by +0.6% in October, pushing the average property price to £299,862, the highest level on record.
However, affordability continues to pose a challenge for homebuyers ahead of the Autumn Budget.
Amanda Bryden, head of mortgages at Halifax, said: “October saw the biggest monthly rise in UK house prices since January this year, with the value of the average UK home increasing by +0.6% (£1,647).
“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%).
“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.
“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 adds: “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.”
According to Halifax, 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.
Nathan Emerson, CEO of Propertymark, said: “Any rise in house prices is a welcome sign of growing confidence in the UK housing market. It suggests that demand remains strong and that recent economic adjustments are beginning to bear fruit. This optimism also arrives at a time when the UK Government’s ambition to deliver 1.5 million new homes in England edges closer to becoming law, a potentially transformative milestone for supply.
“However, with Stamp Duty across England and Northern Ireland becoming a political flashpoint ahead of the Autumn Budget and a flurry of possible housing policy leaks, the drawn-out uncertainty risks unsettling both buyers and sellers.
“Housing is the heartbeat of the UK economy, so policymakers should be focused on delivering stability and reforms that encourage movement, investment, and growth, not hesitation.”
Tanya Elmaz, managing director of intermediary sales at Together said: “The modest rise in house prices in October could be a sign of reviving buyer confidence in what has been an unspectacular year for the market.
“This confidence will be fragile. Yesterday’s decision by the Bank of England to hold interest rates at 4% means borrowing costs may stay higher for longer, and the upcoming Budget continues to loom over the market.
“Rumoured tax changes, including a potential reform of the Stamp Duty regime and a possible property tax on houses worth over £500,000 may be dampening activity as buyers assess the unknown secondary impacts. There have also been suggestions that National Insurance could be introduced on landlords’ rental income, which could be another hammer blow to the private rental sector.”
Marc von Grundherr, director of Benham and Reeves, commented: “The property market continues to display remarkable consistency given the wider economic backdrop, with the latest Halifax figures showing that the monthly rate of growth has bounced back following a marginal decline in September.
“Buyers remain active, mortgage approvals are robust and, even with the Autumn Budget looming, many are pressing ahead to complete before Christmas.
“The underlying message is one of steady resilience rather than dramatic recovery, and that’s no bad thing.”
Every day, landlords who want to influence policy and share real-world experience add their voice here. Your perspective helps keep the debate balanced.
Not a member yet? Join In Seconds
Login with
