The October House Price Index from e.surv revealed a slight improvement across England and Wales, with the average sale price rising to £354,800.
This marks a £600 increase, or 0.2%, compared to September, and is the first monthly rise in six months.
However, prices remain 3.4% lower than they were in October 2022, a trend that reflects ongoing adjustments in a cooling market.
Prices are still approximately £24,000 (over 6%) below the peak seen in late 2022, signalling a longer-term softness in the market.
On a regional basis, London and the South East accounted for about 30% of sales volumes, and all southern English regions have contributed to the overall drag on house prices.
Property values in the South West showed particular weakness, while Northern regions have been somewhat more resilient.
Richard Sexton, director at e.surv, said: “This month our data, which includes cash transactions, showed the average sale price of a home in England and Wales in October moved up to £354,800 – about £600 or 0.2% higher than in September – the first monthly rise in our index for six months and one that wiped out the fall of the previous month.
“Easing cost of living pressures, which have been helped this week by the cut in the Bank of England Base Rate, mean affordability will continue to improve as lenders’ standard variable rates follow suit.
“It remains to be seen if more cuts are in the pipeline.
“The markets suggest there will be more inflationary pressure ahead but for now, buyers should take advantage of the improved affordability – especially in light of the decision in the Budget to return nil Stamp Duty thresholds back to their lower pre-September 2022 levels from April 2025.
“The budget overall focussed on the long-term supply of housing and delivered nothing in terms of fiscal support for buyers in any market which is why interest rates will remain key over the coming months.”
