UK house prices rise by most since January: Halifax
House prices increased by 0.6% in monthly terms in October after a 0.3% fall in September
[LONDON] British house prices last month rose at the fastest pace since January, data from mortgage lender Halifax showed on Friday (Nov 7), adding to signs of demand in the property sector ahead of finance minister Rachel Reeves’ budget on Nov 26.
House prices increased by 0.6 per cent in monthly terms in October after a 0.3 per cent fall in September to reach a new record of £299,862 (S$512,892) – well above a 0.1 per cent rise predicted by economists in a Reuters poll and the biggest rise since January.
Halifax said house prices were 1.9 per cent higher than a year earlier, above the 1.5 per cent forecast in the poll, and compared with an annual increase of 1.3 per cent in September.
But, Amanda Bryden, head of mortgages at Halifax, warned that affordability challenges for buyers remain.
“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 said.
“There is no doubt that affordability remains a challenge for many.”
A NEWSLETTER FOR YOU
Tuesday, 12 pm
Property Insights
Get an exclusive analysis of real estate and property news in Singapore and beyond.
The increase in British property prices has been slower this year than in the second half of 2024 amid concerns about the economy and the prospect of additional taxes on homes as Reeves readies her budget.
“This provides further encouragement that the housing market has weathered the prospect of tax rises in the budget better than it first appeared. What’s more, house prices may get a further boost from lower mortgage rates in the coming months,” Ashley Webb, UK economist at Capital Economics, said.
On Thursday, the Bank of England kept interest rates at 4 per cent, but a close vote and signs that governor Andrew Bailey might soon join those seeking a rate cut boosted the prospect of a cut in December.
Halifax said house prices in London fell by 0.3 per cent from 12 months earlier while the strongest growth was reported in Northern Ireland where prices rose by 8 per cent, Halifax said.
Data from rival mortgage lender Nationwide published last week showed that prices rose by 0.3 per cent in October, pushing annual house price inflation up to 2.4 per cent.
Share with us your feedback on BT's products and services
