UK house prices rose in October, ending a run of six consecutive monthly falls.
It’s time to take a look at the Halifax House Price Index for October 2023, which was published today.
According to the latest data, UK house prices rose in October, up +1.1%, ending a run of six consecutive monthly falls. A typical UK home now costs £281,974, up around £3,000 compared to September. On an annual basis, prices are down -3.2%, however the decline was at a slower pace than we saw in September (- 4.5%).
Prospective sellers appear to be taking a cautious attitude, leading to a low supply of properties for sale. This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall. While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures remain challenging for home buyers.
Across the medium-term, with financial markets not anticipating a decline in the Bank of England’s Base Rate soon, house prices are expected to fall further overall, with a return to growth from 2025.
The current picture should continue to be seen in the context of the longer-term house price trend as, on average, prices remain around £40,000 above pre-pandemic levels.
Overall, the housing market remains subdued, with October marking the first rise in the cost of a typical UK home since March.
In summary:
- Average house prices rose by +1.1% in October, compared to a fall of -0.3% in September
- Property prices dropped by -3.2% on an annual basis (vs -4.5% last month)
- A typical UK home now costs £281,974, up around £3,000 on the previous month
- South East England continues to see the largest annual decline in house prices
The next Halifax House Price Index is scheduled for release on Thursday 7th December 2023.
