The average UK house price topped £270,000 for the first time in October, according to the latest figures from Halifax.
House prices rose 0.9% on the month following a 1.7% increase in September. On the year, prices were 8.1% higher in October, up from 7.4% growth the month before.
The average property now costs a record £270,027, with Wales, Northern Ireland and Scotland continuing to outperform the UK average.
Russell Galley, managing director at Halifax, said: “One of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often further from urban centres. Combined with temporary measures such as the cut to Stamp Duty, this has helped push the average property price up to an all-time high of £270,027.
“Since April 2020, the first full month of lockdown, the value of the average property has soared by £31,516 (13.2%). First-time buyers, supported by parental deposits, improved mortgage access and low borrowing costs, have also helped to drive price growth in recent months. First-time buyer annual house price inflation (+9.2%) is now at a five-month high, and has pushed ahead of the equivalent measure for homemovers (+8.1%).”
Galley expects house buying demand to cool in the months ahead as borrowing costs rise, with the Bank of England set to react to building inflation risks by raising rates as soon as next month, and with further such rises predicted over the next year.
“That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the primary obstacle for many. The impact on property prices may also be tempered by the continued limited supply of properties available on the market,” he added.
Earlier this week, Nationwide said that house prices hat his £250,311 in October, topping a quarter of a million pounds for the first time.