Data published by Halifax and Bank of Scotland showed that the house price index rose 0.2% m/m in October, slowing compared to September (+0.3%), but confirming economists' forecasts. It was the 5th consecutive monthly increase. On an annual basis, the house price index rose 3.9% after an increase of 4.6% in September (revised from +4.7%). Consensus estimates suggested an increase of 4.2%. Typical property now costs 293,999 pounds, surpassing previous peak set in June 2022 (293,507 pounds)
Northern Ireland continues to record the strongest annual house price growth in the UK - by 10.2% per annum, to 204,242 pounds. House prices in Wales jumped by 5.6% per annum, with properties now costing an average of 225,543 pounds. In Scotland, house prices rose by 1.9% per annum, to 206,480 pounds. The North West remains the region of England with the strongest growth, up by 5.9% per annum, to 235,587 pounds. London continues to have the most expensive property prices in the UK, now averaging 543,308 pounds, up by 3.5% per annum.
"The fact that house prices have reached such heights again in the current economic environment may come as a surprise to many, but perhaps more remarkable is that they did not initially fall very much. Despite the headwinds in the form of higher interest rates, house prices have mostly leveled off over the past two and a half years, recording an overall increase of 0.2%. Despite the availability issues, market activity is improving. Looking ahead, credit restrictions remain a problem for many buyers," said Amanda Bryden, Head of Mortgages at Halifax.