The Halifax house price index showed that the market returned to growth after a 0.3% fall in September. Further, average values had risen in four of the last five months.
On an annual basis, average house prices were 1.9% higher than a year earlier, and the rate of growth was up on September’s 1.3%.
Northern Ireland growth continues
Halifax’s data showed that Northern Ireland continued to be the nation with the strongest annual price growth, with values up by 8% compared to 6.4% the month before. In Northern Ireland, the average house price was £219,646.
In Scotland, prices were up 4.4% annually to £216,051, and in Wales, there was a 2% lift to £229,558.
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Within England, the North East recorded the highest annual growth rate at 4.1%, bringing average values to £180,924.
Average prices fell in London and the South East by 0.3% and 0.1% respectively. London remained the most expensive for house prices, averaging £542,273.
Amanda Bryden, head of mortgages at Halifax, said: “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.
“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.”
A housing market back on its feet
Jonathan Handford, managing director at Fine & Country, said the figures were a “clear sign” that the market was “stirring back into life after what has been a fairly steady year for house prices”.
He added: “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.”
Handford said this momentum could carry through the late autumn and early 2026, as long as “borrowing conditions continue to ease and economic sentiment stabilises”.
He added: “Buyers and sellers alike should be reassured that the market is healthy, active and primed for those who engage wisely.”
Tomer Aboody, director of MT Finance, said: “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.”
Tanya Elmaz, managing director of intermediary sales at Together said the “modest rise” in prices could be a sign of “reviving buyer confidence in what has been an unspectacular year for the market”.
Elmaz added: “This confidence will be fragile. Yesterday’s decision by the Bank of England to hold interest rates at 4% means borrowing costs may stay higher for longer, and the upcoming Budget continues to loom over the market.
“That being said, there remains plenty of opportunities out there for savvy homebuyers or investors.”
