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| House prices at record high, says Halifax | House prices at record high, says Halifax |
| (about 4 hours later) | |
| The average UK house price reached a record high last month, according to Halifax. | The average UK house price reached a record high last month, according to Halifax. |
| The UK's largest mortgage lender said the average price hit £293,999 in October, surpassing a peak of £293,507 that was reached in June 2022. | The UK's largest mortgage lender said the average price hit £293,999 in October, surpassing a peak of £293,507 that was reached in June 2022. |
| Halifax said it expected prices to continue to rise at a "modest pace" for the next few months. | Halifax said it expected prices to continue to rise at a "modest pace" for the next few months. |
| However, it warned that mortgage costs could remain "higher for longer" following last week's Budget. | However, it warned that mortgage costs could remain "higher for longer" following last week's Budget. |
| Following the Budget, which included plans to borrow and spend billions of pounds, financial markets expect the Bank of England to cut rates more slowly than previously anticipated. | Following the Budget, which included plans to borrow and spend billions of pounds, financial markets expect the Bank of England to cut rates more slowly than previously anticipated. |
| The Bank cut its key rate to 4.75% from 5% as expected on Thursday. | |
| Following its decision, Bank governor Andrew Bailey said that interest rates would "continue to fall gradually from here”. | |
| However, he cautioned that "we can’t cut interest rates too quickly or by too much" on order to keep inflation close to its 2% target. | |
| Halifax said house prices edged up by 0.2% in October, meaning property values have now increased for four months in a row. | Halifax said house prices edged up by 0.2% in October, meaning property values have now increased for four months in a row. |
| House prices are up 3.9% from a year earlier, Halifax said, which is a slight decrease from the 4.6% annual increase seen in September. | House prices are up 3.9% from a year earlier, Halifax said, which is a slight decrease from the 4.6% annual increase seen in September. |
| Commenting on the new record high, Amanda Bryden, head of mortgages at Halifax, said: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place. | Commenting on the new record high, Amanda Bryden, head of mortgages at Halifax, said: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place. |
| "Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a +0.2% increase overall." | "Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a +0.2% increase overall." |
| She added that Budget announcements such as higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers could hit demand for properties. | She added that Budget announcements such as higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers could hit demand for properties. |
| However, she added that market activity had been improving, with the number of new mortgages agreed recently hitting the highest level for two years. | However, she added that market activity had been improving, with the number of new mortgages agreed recently hitting the highest level for two years. |
| At the moment, you do not pay stamp duty when buying a property worth less than £250,000. This was doubled from £125,000 under Liz Truss' mini-Budget in September 2022. | At the moment, you do not pay stamp duty when buying a property worth less than £250,000. This was doubled from £125,000 under Liz Truss' mini-Budget in September 2022. |
| If you're a first time buyer you do not pay stamp duty on homes worth up to £425,000 after this threshold was raised from £300,000. | If you're a first time buyer you do not pay stamp duty on homes worth up to £425,000 after this threshold was raised from £300,000. |
| These higher thresholds will revert to previous levels in March 2025. | These higher thresholds will revert to previous levels in March 2025. |
| David Stirling, an independent financial adviser at Mint Mortgages & Protection, said: "Estate agents are busy even in a higher interest rate environment and mortgage applications and approvals are still strong." | David Stirling, an independent financial adviser at Mint Mortgages & Protection, said: "Estate agents are busy even in a higher interest rate environment and mortgage applications and approvals are still strong." |
| Where are prices rising the fastest? | Where are prices rising the fastest? |
| London remains the most expensive place in the UK to buy a house. | London remains the most expensive place in the UK to buy a house. |
| The average property there now costs £543,308, which is up 3.5% compared to last year, the Halifax said. | The average property there now costs £543,308, which is up 3.5% compared to last year, the Halifax said. |
| Northern Ireland has maintained its record for the strongest annual house price growth in the UK. | Northern Ireland has maintained its record for the strongest annual house price growth in the UK. |
| The average price of a property there is now £204,242. | The average price of a property there is now £204,242. |
| In England, the North West region saw the strongest growth with prices up 5.9% over the last year making the average house cost £235,587. | In England, the North West region saw the strongest growth with prices up 5.9% over the last year making the average house cost £235,587. |
| House prices in Wales also saw a strong growth, up 5.6% compared to last year, with homes now costing an average of £225,543. | House prices in Wales also saw a strong growth, up 5.6% compared to last year, with homes now costing an average of £225,543. |
| In Scotland, a typical property now costs £206,480, which is up 1.9% compared to 2023. | In Scotland, a typical property now costs £206,480, which is up 1.9% compared to 2023. |
| Ways to make your mortgage more affordable | Ways to make your mortgage more affordable |
| Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later. | Make overpayments. If you still have some time on a low fixed-rate deal, you might be able to pay more now to save later. |
| Move to an interest-only mortgage. It can keep your monthly payments affordable although you won't be paying off the debt accrued when purchasing your house. | Move to an interest-only mortgage. It can keep your monthly payments affordable although you won't be paying off the debt accrued when purchasing your house. |
| Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available. | Extend the life of your mortgage. The typical mortgage term is 25 years, but 30 and even 40-year terms are now available. |
| Read more here. | Read more here. |
| Get in touch | Get in touch |
| Are you affected by issues covered in this story? Share your experiences. | Are you affected by issues covered in this story? Share your experiences. |