House prices in England rose in October after a six-month slump

According to data from the Halifax Housing Index published monthly in England, the average house price in the country was £281,974 in October. This figure was £3,000 less in September.

The average house price in England fell by 3.2 per cent year-on-year in October. The average house price in the country decreased 0.3 percent monthly and 4.5 percent annually in September.

Housing demand in the UK is weak, but due to high rental prices, demand from first-time homebuyers was one of the factors driving the rise in October.

Housing prices decreased annually in all cities and regions. The biggest decline was in the south-east of England, at 6 per cent. Scotland was the place where prices remained most resilient, falling 0.2 per cent year on year.

Despite the 4.6 per cent annual decline, London maintained its title of “city with the highest average house price”, at £524.57.

DECREASE IN SUPPLY

Halifax Mortgage director Kim Kinnaird said home sellers took a cautious approach, leading to a squeeze in supply.

Kinnaird noted that this situation increased house prices in the short term, saying: “In fact, the increase in house prices was driven by low supply rather than demand, demand remains low overall. While people’s incomes are rising with wage increases, high interest rates and other economic pressures continue to pose difficulties for buyers.

“Given market expectations that the Bank of England will not reduce interest rates in the short term, we predict that house prices will continue to fall and will only start to rise again in 2025.” he said.