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House prices inched up in October to reach record high

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
10/11/2017

The average UK house price rose by 0.3% in October to reach £225,826, according to Halifax – its highest-ever level.

Prices are now up 4.5% over the last year, and 2.3% over the last three months, marking the fastest pace of growth since January.

Russell Galley, managing director of Halifax Community Bank, said that the annual rate of growth has continued to rise for the third month in succession, from 4.0% in September to 4.5% in October.

He added: “The fact that the supply of new homes and existing properties available for sale remains low, combined with historically low mortgage rates and a high employment rate, continues to support house prices and is likely to do so over the coming months.

“Increasing pressure on household finances and continuing affordability concerns are some of the factors likely to dampen buyer demand. That said we do not anticipate the Base Rate rise will be a barrier to buying a house.”

Despite the recent rises in house prices confidence in UK house prices has fallen to its lowest level since December 2012, according to the latest Halifax Housing Market Confidence Tracker.

However, Ishaan Malhi, CEO of online mortgage broker Trussle, said that today’s figures were good news for homeowners, “particularly those with a small amount of equity in their homes”.

“First-time buyers, on the other hand, face a greater challenge of getting on the property ladder. Last week’s Base Rate rise will mean that some will be no longer able to afford to get a mortgage.”