UK house prices continued their upward trajectory in October, according to the Halifax House Price Index, rising by 0.6% following a 0.3% fall in September. It marks the fourth increase in the past five months, pushing the average property price to a record £299,862. The annual growth rate strengthened to 1.9%, up from 1.3% in September. Alongside the rise, mortgage approvals reached their highest level this year, signalling that buyer demand remains resilient despite broader economic pressures.
Mortgage & Property experts have shared their views, and what they believe this means for the market and sector as a whole.
Amanda Bryden, Head of Mortgages, 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.
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.”
Ian Futcher, financial planner at Quilter:
“The latest index from Halifax reveals UK house prices rose by 0.6% in October, bringing the average house price to £299,862. This marks a new record high and the biggest monthly rise in UK house prices since January this year. This rise in prices follows the recent trend of a relatively stagnant market ahead of the highly anticipated budget, which is now just a couple of weeks away. Several months of speculation on what is to come has driven caution across all aspects of personal finances, and the housing market had been bearing much of the brunt.
The market impact of the rumours around possible changes to property taxation has seemingly been countered by lower borrowing costs, which have been very gradually easing affordability constraints. The average mortgage rate dipped below 5% in September for the first time in more than three years, and has done so again this month after rising to just over 5% in October. However, mortgage rates remain relatively high, and the Chancellor’s unusual pre-Budget speech did little more than fan the flames as far as expectations for tax hikes are concerned. This reinforced the pressures on would-be buyers as they consider the affordability of a new mortgage on top of high living costs. A rise in house prices will only further squeeze their finances and could see some adjust their plans.
The Bank of England’s decision to maintain the base rate at 4% may also give prospective buyers or home movers pause for thought, especially as a further rate cut is widely expected by early next year which could result in buyers holding off in the hopes of securing more favourable rates. While house prices have risen slightly for now, the market may well re-enter its holding pattern until the Chancellor provides some much-needed clarity at the budget later this month.”
Daniel Austin, CEO and co-founder at ASK Partners, said: “Today’s modest uptick in UK house prices offers a flicker of optimism, but growth remains muted as elevated borrowing costs continue to weigh on affordability. The Bank of England’s decision to hold rates at 4% provides little immediate relief, with stubbornly high fixed mortgage rates keeping pressure on homeowners and first-time buyers alike.
With global volatility elevated and domestic policy direction uncertain ahead of the Autumn Statement, policymakers are holding back pending greater fiscal clarity. Inflation is unlikely to return to target this year, maintaining mortgage strain and dampening household confidence. As a result, the property market remains cautious, buyers are pausing, and developers are delaying projects amid uncertainty over taxation, build costs, and planning timelines.
Proposed reductions in affordable housing requirements and efforts to streamline planning could boost scheme viability, yet high financing costs and tight margins continue to constrain delivery. Even so, resilient sectors such as co-living, build-to-rent, and storage remain attractive to investors, supported by robust fundamentals and a persistent supply-demand imbalance. For those seeking stability amid geopolitical risk and wider market volatility, UK real estate debt continues to stand out, offering capital preservation, steady income, and a degree of insulation from equity market swings.”
Matthew Thompson, Head of Sales at Chestertons, says:
“October’s property market was noticeably calmer as many buyers have paused to see what the Budget might bring. Some buyers remained active and were able to secure good opportunities, particularly where sellers were willing to negotiate. Once there is more clarity from the Chancellor’s announcements, we expect buyer activity to pick up as those waiting on the sidelines re-enter the market.”
Nathan Emerson, CEO of Propertymark, comments:
“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.”
Jonathan Handford, Managing Director at Fine & Country, comments:
“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.”
