House prices climbed at their fastest monthly pace since the start of the year, rising by 0.6% in October following a -0.3% fall in September, according to Halifax’s latest House Price Index.
It marks the fourth price increase in the past five months, signalling continued resilience in the housing market despite wider economic uncertainty.
The average property price now stands at £299,862, nudging to a new record high.
On an annual basis, house price growth has strengthened to 1.9%, up from 1.3% in September.
Mortgage approvals have also reached their highest level so far this year, indicating that buyer demand remains stronger than many had expected, particularly among movers and first-time buyers adjusting to the new interest rate environment.
Regionally, Northern Ireland continues to lead annual growth.
Meanwhile, some English regions remain subdued, with affordability pressures still acting as a drag on higher-priced markets.
Amanda Bryden, head of mortgages at Halifax, said: “October saw the biggest monthly rise in UK house prices since January this year, with the value of the average UK home increasing by +0.6% (£1,647). That brings the typical property price up to £299,862 – the highest on record – while annual growth also increased to +1.9% (from +1.3%).
“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. 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.”
She added: “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.
“Even so, 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. With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue.”
Reaction:
Nathan Emerson, CEO of Propertymark:
“Any rise in house prices is a welcome sign of growing confidence in the UK housing market. It suggests that demand remains strong and that recent economic adjustments are beginning to bear fruit. This optimism also arrives at a time when the UK Government’s ambition to deliver 1.5 million new homes in England edges closer to becoming law, a potentially transformative milestone for supply.
“However, with Stamp Duty across England and Northern Ireland becoming a political flashpoint ahead of the Autumn Budget and a flurry of possible housing policy leaks, the drawn-out uncertainty risks unsettling both buyers and sellers.
“Housing is the heartbeat of the UK economy, so policymakers should be focused on delivering stability and reforms that encourage movement, investment, and growth, not hesitation.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“Anecdotally, we were expecting it to be very quiet in the run-up to the Budget, but that hasn’t been the case. We’ve agreed a high number of sales – mainly freehold homes – with prices reaching up to £2.5 million.
“It may be that some buyers are moving now to hedge their bets in case the Budget proves less property-focused than first expected. A measured Budget and a rate cut early in 2026 would be the ideal combination to unlock more momentum in the market.”
Mark Harris, chief executive of mortgage broker SPF Private Clients:
“Affordability is slowing improving as lenders ease criteria and reduce rates, which is putting those ready to proceed with their purchases in a stronger position.
“Although the Bank of England held interest rates at yesterday’s meeting, the vote was closer than expected with four of the nine members favouring a rate cut, which bodes well for a further reduction in December.
“Market expectations are for another rate cut before the end of the year, with Nationwide, Santander, Halifax and NatWest, among other lenders, reducing rates in recent days in an effort to drum up business before year end.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“Once again, the market is baring its teeth. Although sentiment is split between upsizers who believe prospects will improve and downsizers who think it may deteriorate as a result of Budget measures, fortunately enough buyers and sellers have confidence in longer-term prospects.
“The Chancellor may have confirmed taxes will be rising but encouragement can be taken from the Bank of England’s comments that inflation has peaked and that direction of travel for interest rates is certainly downward in the coming months.”
Tomer Aboody, director of specialist lender MT Finance:
“With the Budget coming up, many fear further hits to the economy. Possibly in anticipation of this, buyers have been making their move.
“With a lack of supply due to little encouragement from the government for people to move, we are seeing competition among buyers pushing prices up.”
Iain McKenzie, CEO of The Guild of Property Professionals:
“October’s data from Halifax paints a picture of cautious resilience in the UK housing market. A +0.6% monthly rise, the strongest since January, and annual growth of +1.9% underscore that demand remains solid.
“While the upcoming Autumn Budget and the prospect of possible tax changes are creating a degree of hesitation, particularly at the top end of the market, the fundamentals remain steady. Mortgage approvals and transaction levels are both up year-on-year, reflecting the presence of serious, needs-based buyers who continue to move despite wider uncertainty.
“A 7% increase in the number of homes for sale compared with last year is helping to balance the market, giving buyers more choice and tempering the pace of price growth. Looking ahead, we expect affordability to gradually improve as wage growth continues and borrowing costs ease once the Bank of England begins to lower rates again.
“Overall, the market is showing cautious confidence, steady, not spectacular, but underpinned by genuine activity and improving fundamentals. This stability should give both buyers and sellers reassurance as we move towards the end of the year.”
Jason Tebb, president of OnTheMarket:
“The housing market continues to demonstrate its resilience, shaking off external economic concerns and holding up remarkably well even as speculation continues as to what the Budget might hold in store later this month.
“Confidence among buyers and sellers has undoubtedly been boosted by five base rate cuts over the past 14 months. Yesterday’s hold in rates for the second consecutive month, while not delivering the further reduction borrowers would have wanted, does suggest a stability in the market which is encouraging. With the vote extremely close, and further reductions expected, this should help improve affordability, stimulate the market and encourage activity into the new year.”
Jonathan Hopper, CEO of Garrington Property Finders:
“Pre-Budget jitters are giving the property market a bumpy ride. The direction of travel on prices has been seesawing. On a national basis, Halifax’s data shows they fell 0.3% in September but surged 0.6% in October.
“But split things by region and the market looks K-shaped. Prices in the north of England and Scotland continue to ratchet upwards, with almost no loss of momentum.
“Meanwhile average prices in London have settled into a pattern of steady decline. Across the capital as a whole they fell by 0.3% in the year to October, but in prime areas the falls are sharper.
“Meanwhile average prices in the commuter belt have slipped into near stagnation – up just 0.1% across the southeast over the past year.
“The reason for this growing divergence between north and south is that amid all the uncertainty about what property taxes this month’s Budget might hold, one thing is clear – the pain will fall disproportionately on higher value homes and this puts the southeast of England squarely in the Chancellor’s firing line. The ‘broadest shoulders’ are braced for impact.
“This is driving down prices and has had a chilling effect on the number of transactions, but it hasn’t stopped them entirely.
“Many buyers have simply pressed pause on their search, but we are seeing some capitalise on the sudden drop-off in competition and the abundance of homes for sale to pounce on the best properties and secure big discounts off the asking price.
“Yet this is a market that feels suspended between confidence and caution. Every move is tactical, every deal is hard-fought, and sentiment is fragile. The Budget will decide whether the pent-up demand is unleashed or throttled.”
Jonathan Handford, managing director at Fine & Country:
“Today’s figures are a clear sign that the market is stirring back into life after what has been a fairly steady year for house prices. This uptick reflects easing affordability pressures, stabilised mortgage costs and an underlying buyer confidence that remains intact.
“For sellers, this is a timely reminder that value is still being upheld, however, expectations must align with the new market dynamics. Buyers now hold more choice, are more discerning and expect transparency and strong presentation when they walk through your door.
“In many parts of the country, supply remains elevated compared with recent years, so competition among sellers is real. A property that stands out through condition, price and presentation will attract interest quickly with some good marketing from an agent.
“With the Autumn Budget just weeks away, attention is turning to whether the Government will introduce further housing or tax reforms. Clarity around stamp duty or any proposed property levies would be welcome. We need to see confidence kept high in order to avoid buyers adopting a wait-and-see approach.
“Looking ahead, this momentum could carry into late autumn and early 2026, provided borrowing conditions continue to ease and economic sentiment stabilises. Buyers and sellers alike should be reassured that the market is healthy, active and primed for those who engage wisely.”
Babek Ismayil, founder and CEO of homebuying platform OneDome:
“A stronger-than-expected rise in house prices in October underlines just how resilient the housing market has been this year.
“Despite higher living costs and lingering affordability pressures, many buyers are adapting to the new normal of 4% mortgage rates and re-engaging with the market. Sellers, too, are adjusting their expectations, leading to more realistic pricing and a healthier balance between supply and demand.
“The Bank of England’s decision yesterday to hold rates will steady nerves, even if it stops short of reigniting activity. A cut would have injected fresh life into the market, but for now, the absence of further hikes is enough to keep confidence intact. Mortgage rates have eased from their peak, and that gradual improvement is helping to draw more buyers back into the conversation.
“With the average home now approaching £300,000, we could see prices tip over that landmark figure before the year ends – a clear sign of the market’s underlying strength. The outlook for early 2026 depends heavily on how quickly borrowing costs fall, but there’s a sense that we’re moving back towards normality – with both sides of the transaction becoming more pragmatic.
“After a period of adjustment, the housing market is beginning to settle. Buyers are more selective, sellers more grounded, and both are working within a framework that finally feels stable. That’s a solid foundation to build on as we move into the new year.”
