The UK property market continues to surge as the average house price reaches a new record high in October, close to £294,000, according to data from Halifax. This marks the fourth consecutive monthly increase in house prices, with a rise of 0.2% reported. The annual growth rate stands at 3.9%, slightly lower than the 4.6% increase seen in September.
Amanda Bryden, head of mortgages at Halifax, noted, “The average UK house prices saw a marginal increase of 0.2% in October, maintaining the positive trend of recent months.” She highlighted that despite the challenges of affordability, market activity has been on the rise, with the number of new mortgages agreed reaching a two-year high. Bryden also mentioned that despite higher interest rates and borrowing constraints, house prices have remained relatively stable over the past two and a half years, showing a modest overall increase of 0.2%.
In terms of regional variations, the average house prices along with the annual increase are as follows according to Halifax:
– East Midlands: £242,189 (4.4%)
– Eastern England: £333,741 (3.1%)
– London: £543,308 (3.5%)
– North East: £172,730 (4.0%)
– North West: £235,587 (5.9%)
– Northern Ireland: £204,242 (10.2%)
– Scotland: £206,480 (1.9%)
– South East: £387,587 (3.2%)
– South West: £303,362 (3.3%)
– Wales: £225,543 (5.6%)
– West Midlands: £257,287 (4.7%)
– Yorkshire and the Humber: £211,629 (5.3%)
Experts in the industry have shared their insights on the current state of the property market. Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, highlighted uncertainties around mortgage rates, while Mark Harris, chief executive of mortgage broker SPF Private Clients, pointed out the impact of rising UK gilt yields on swap rates, influencing mortgage pricing.
Guy Gittins, chief executive of estate agent Foxtons, expressed optimism about the future, noting that the recent positive growth in house prices reflects the strength of the UK property market. However, concerns remain about the potential impact of policies like higher stamp duty for second home buyers and the return to previous thresholds for first-time buyers on market demand.
While house prices are expected to continue growing, the pace is likely to be moderate for the remainder of this year and into the next. With the possibility of slower interest rate cuts and tax rises, future developments in the property market will be closely monitored by industry experts.