UK house prices rise in October for first time since March - Halifax

UK house prices rose in October amid constrained supply, after six consecutive monthly falls, but demand remains weak overall, according to data released by Halifax on Tuesday.

House prices ticked up 1.1% on the month following a 0.3% fall in September.

On the year, prices were down 3.2% in October following a 4.5% decline the month before. The average price of a home stood at £281,974.

Kim Kinnaird, director, Halifax Mortgages, 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."