Month-on-month jump in house prices in October

This means the typical UK home costs £281,974 – up around £3,000 on the previous month. Despite this, property prices have dropped by 3.2% on an annual basis, with the south east of England continuing to see the largest annual decline in house prices.  

Additionally, the bank found that all UK nations and regions saw house prices decline on an annual basis – with Scotland’s house prices being the most resilient, down just 0.2% annually. It was similar in Northern Ireland, with a decline of 0.5%, while property prices in Wales fell by 3.9% during the year.  

London, meanwhile, continues to have the highest average price in the UK, at £524,057, falling by 4.6% over the last year.  

Commenting on the figures as a whole, Halifax Mortgages director Kim Kinnaird said: “Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale. This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall.  

“While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures continue to be challenges for buyers. 

“Across the medium-term, with financial markets not anticipating a decline in the Bank of England’s Base Rate soon, we expect house prices to fall further overall – with a return to growth from 2025. 

“The current picture should continue to be seen in the context of the longer-term house price trend as, on average, prices remain around £40,000 above pre-pandemic levels.”

Its house price index also suggests that – despite a weakness in overall buyer demand – the first-time buyer market held up relatively well with the latest data showing prices in this market are down 2.4% annually, 0.8% higher than the market more generally over past year.