According to the Halifax house price index, the average home value rose to £293,999 in October, surpassing the previous peak of £293,507 set in June 2022.
Despite slower growth, with prices up 3.9% from the previous October compared to 4.6% annual growth in September, house prices have remained relatively stable.
Amanda Bryden, head of mortgages at Halifax, noted, “It may surprise many that house prices have climbed to these levels in the current economic climate, but what’s perhaps more remarkable is how little they dropped initially.
“Even with higher interest rates, house prices have largely stabilized over the past two and a half years, with an overall increase of just 0.2%.
“This marks a stark slowdown from the 21% surge we saw from January 2020 to summer 2022.
“Despite affordability challenges, market activity has been picking up. The number of new mortgage agreements recently hit its highest point in two years.
“This trend aligns with mortgage rates dropping steadily since spring—now over 160 basis points lower than in summer 2023—along with continued positive income growth.”
