UK house prices rose at their fastest pace since January last month, pushing the average property value to a record high, according to Halifax.
The lender’s latest House Price Index for October shows that house prices increased by 0.6% in October, bringing the average price of a home to £299,862, just shy of the £300,000 mark. Annual growth accelerated to 1.9%, up from 1.3% in September.
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.”
Many buyers are opting for longer mortgage terms and smaller deposits to help them manage the costs of buying a home, the bank said. However, if you’re considering going for a longer mortgage term, bear in mind that although your monthly payments will be lower, you’ll end up paying more interest back overall.
Affordability pressures should ease going forward as wages are growing faster than property prices. Ms Bryden said: “With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue.”
Northern Ireland sees strongest house price growth…again
Property prices in Northern Ireland again saw the strongest annual house price growth of any region in the UK, with prices up 8% over the past year. The average price of a property in Northern Ireland now stands at £216,646.
Scotland and Wales recorded annual price growth of 4.4% and 2% respectively over the past year, with average property prices reaching £216,051 in Scotland and £229,558 in Wales.
It’s a less positive picture for the South of England however, with prices in London and the South East falling slightly over the past year by -0.3% and - 0.1% respectively. Despite the modest decline, London remains the most expensive region of the UK to buy a home, with the average property there costing £542,273.
