Halifax HPI: Property values bounce back in October

House prices rose by +0.6% in October vs a fall of -0.3% in September.

Fourth time in last five months that the average price has increased.

Average property price now £299,862, edging up to a new record high and the annual rate of growth rises to +1.9% (up from +1.3% in September).

Mortgage approvals reach highest level this year, indicating resilient demand, whilst Northern Ireland continues to lead annual house price growth in the UK.

Shepherd Ncube, Founder and CEO of Springbok Properties, said, “While the latest data shows small but positive steps for the market, the reality on the ground remains far more testing for sellers.

“Market hesitation is rife and whilst sellers are securing a fair price, it’s taking many months before they find a buyer willing to commit.

“Those with ambitions of moving Christmas may well find themselves disappointed, even if they already have a buyer, as the overarching air of market instability is also leading to a greater propensity for sales to fall through at the final hour.

Verona Frankish, CEO of Yopa, added, “Despite the economic headwinds and political noise ahead of the Autumn Budget, it seems as though the rush to complete before Christmas is well and truly on.

“A late seasonal surge in market activity has not only helped the monthly rate of house price growth to rebound, but we’ve also seen the annual rate of increase strengthen as well.

“This is the real evidence of improving market health and, all in all, we’re set to finish the year on a very strong footing, all things considered.”

Islay Robinson, CEO of Enness Global, said, “The housing market has continued to demonstrate a calm determination and whilst we’ve seen a degree of hesitancy throughout the year, it seems as though buyers and sellers are throwing caution to the wind, with a late sprint to the finish line regardless of what might come in the Autumn Budget.

“The desire to transact before year end is clearly outweighing any short-term political or fiscal uncertainty and it’s a strong finish to what has been a surprisingly resilient year for the market.”

Marc von Grundherr, Director of Benham and Reeves, said, “The property market continues to display remarkable consistency given the wider economic backdrop, with the latest Halifax figures showing that the monthly rate of growth has bounced back following a marginal decline in September.

“Buyers remain active, mortgage approvals are robust and, even with the Autumn Budget looming, many are pressing ahead to complete before Christmas.

“The underlying message is one of steady resilience rather than dramatic recovery, and that’s no bad thing.”