The housing market is showing signs of strength, with encouraging new figures from Halifax indicating growth in October.
House prices across the UK are on the rise again, with the latest figures from Halifax showing the fastest monthly increase since January. Despite challenges around affordability, demand for homes remains strong, and prices have reached a new record high.
House prices rose by 0.6% in October, following a slight decline in September, according to Halifax. It’s the fourth rise in the last five months, showing that the property market is still holding steady.
The average home now costs £299,862, up £1647 from the previous month. Annual house price growth has also increased to 1.9%, up from 1.3% in September.
Buyer demand holding up well
Amanda Bryden, Head of Mortgages at Halifax, says: ‘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,’ adds Bryden. ‘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.
‘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.’
The property market has been resilient
However, Halifax says that 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. House prices have increased more slowly than incomes for almost three years, so the lender expects better affordability to continue.
When it comes to regional trends, Northern Ireland is leading the way, with prices up 8% year-on-year to an average of £219,646. In Scotland, prices rose 4.4% to £216,051, and in Wales, they increased by 2% to £229,558.
Biggest price increases in the North East
In England, the North East saw the biggest increase at 4.1%, with average prices now £180,924. Meanwhile, London and the South East saw slight annual declines of -0.3% and -0.1%, but the capital remains the UK’s most expensive region, with average prices at £542,273.
If you’re thinking about buying your first property or moving house, now could be a good time to speak to an experienced mortgage broker and explore your options.