House prices across the UK rose at their strongest rate in nearly a year in October, according to data released by Halifax on Friday.
Prices climbed 0.6% in October, marking a sharp reversal from September’s 0.3% decline. October’s gains were the fourth monthly increase in the past five months.
Halfax says the average UK property now costs £299,862—a new record high. Annual growth has accelerated to 1.9%, up from 1.3% in September.
Northern Ireland remains the regional powerhouse, posting the strongest annual house price growth across the UK.
“The modest rise in house prices in October could be a sign of reviving buyer confidence in what has been an unspectacular year for the market,” said Tanya Elmaz, managing director of intermediary sales at Together.
“This confidence will be fragile. Yesterday’s decision by the Bank of England to hold interest rates at 4% means borrowing costs may stay higher for longer, and the upcoming Budget continues to loom over the market.
“Rumoured tax changes, including a potential reform of the Stamp Duty regime and a possible property tax on houses worth over £500,000 may be dampening activity as buyers assess the unknown secondary impacts. There have also been suggestions that National Insurance could be introduced on landlords’ rental income, which could be another hammer blow to the private rental sector.”