Average UK house price hit record high in October

The average UK house price hit a new high last month putting it just shy of £294,000, according to an index.

House prices increased by 0.2% in October, the fourth monthly increase in a row, Halifax reported. The average house price was £293,999, surpassing a previous peak in June 2022.

Property values increased by 3.9% annually, slowing from a 4.6% increase in September.

Amanda Bryden, head of mortgages, Halifax, said: “Average UK house prices nudged up 0.2% in October, continuing the positive momentum of recent months. This brought the annual growth rate to 3.9%, slightly lower than in September.

“The average property price has reached a record high of £293,999, surpassing the previous peak of £293,507 set in June 2022, towards the end of the pandemic-era ‘race for space’. That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.

“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a 0.2% increase overall. That’s a significant slowdown compared to the 21% rise we saw in the equivalent period from January 2020 to the summer of 2022.”

Ms Bryden continued: “Despite the affordability challenge, market activity has been improving. The number of new mortgages agreed recently reached its highest level in two years. This aligns with average mortgage rates dropping steadily since spring.”

Borrowing constraints remain a challenge for many buyers, she said, adding: “New policies like higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers migh