The average cost of a UK home has surged to a new record high, brushing the $pounds$300,000 mark after the fastest monthly price rise since January. According to the latest figures from Halifax, property values jumped by 0.6% in October, landing the average price at a record $pounds$299,862.
This strong performance marked a significant turnaround from the unexpected 0.3% dip recorded in September. The growth outpaced expectations, as economists had only forecast a modest 0.1% rise. On an annual basis, the market also showed surprising strength, with prices up 1.9% compared to forecasts of a 1.5% increase.
Buyer demand appears to be a key driver, holding up well as the market moves into autumn. Amanda Bryden, head of mortgages at Halifax, noted that the number of new mortgages being approved recently climbed to its highest level so far this year, signalling a resilient interest from homebuyers.
However, this resilience comes against a backdrop of significant affordability challenges. With prices at a record level, many buyers are finding it a “stretch” to make the numbers work. This is leading to compromises, such as opting for smaller deposits and significantly longer mortgage terms to manage monthly payments.
The market is also contending with wider economic pressures. “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,” Bryden added. Despite this volatility, the market has proven remarkably stable in recent months.