Resilient buyer demand pushed UK home prices to a record high in October, with the market shrugging off both affordability woes and political uncertainty. The average cost of a home jumped 0.6% to $pounds$299,862, marking the fastest monthly increase since January, according to the Halifax index.
This growth, which reversed a 0.3% dip in September, was underpinned by strong mortgage activity. Amanda Bryden of Halifax confirmed that “demand from buyers has held up well,” pointing out that “the number of new mortgages being approved recently hitting its highest level so far this year.”
This resilience is particularly notable given the significant headwinds. Affordability remains a critical challenge, with many buyers opting for smaller deposits and longer loan terms. Furthermore, the rising cost of essentials is squeezing disposable incomes, making the high property prices “feel like a stretch” for many.
The market also faced uncertainty from the upcoming November 26 budget, where major changes to stamp duty have been reported as a possibility. Despite this, many buyers were willing to proceed, demonstrating a robust underlying confidence in the market.
While a related story saw shares in the property portal Rightmove fall after a profit warning, this appeared disconnected from the front-line market. Halifax’s Bryden concluded that while there has been “some volatility, the market has proven resilient over recent months.”