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UK house prices hit record high

Since April 2020 the value of the average property has soared by £31,516 (13.2%).

Average property up more than £2,500 in October

UK house prices have hit a record high as the average property tops £270,000 for the first time, and since April 2020 the value of the average property has soared by £31,516 (13.2%).

The record high in house prices is reported in the newly-released Halifax House Price Index, which shows that the value of the average property increased more than £2,500 in October.

Russell Galley, Halifax Managing Director, said: “UK house prices climbed again in October, as the value of the average property grew by 0.9%, an increase of more than £2,500 during the month. With prices rising for a fourth straight month, the annual rate of inflation now sits at 8.1%, its highest level since June.

“One of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often further from urban centres. Combined with temporary measures such as the cut to Stamp Duty, this has helped push the average property price up to an all-time high of £270,027. Since April 2020, the first full month of lockdown, the value of the average property has soared by £31,516 (13.2%).

“First-time buyers, supported by parental deposits, improved mortgage access and low borrowing costs, have also helped to drive price growth in recent months. First-time buyer annual house price inflation (+9.2%) is now at a five-month high, and has pushed ahead of the equivalent measure for home movers (+8.1%).

“More generally the performance of the economy continues to provide a benign backdrop to housing market activity. The labour market has outperformed expectations through to the end of furlough, with the number of vacancies high and rising relative to the numbers of unemployed.

“With the Bank of England expected to react to building inflation risks by raising rates as soon as next month, and further such rises predicted over the next 12 months, we do expect house buying demand to cool in the months ahead as borrowing costs increase. That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the primary obstacle for many. The impact on property prices may also be tempered by the continued limited supply of properties available on the market.”

Wales continues to show the strongest house price inflation of any UK nation or region, increasing 12.9% in October to an average of £198,880. The average cost of a property in Scotland is up 8.6% year-on-year to £190,000.

In England, the north-west is back as the strongest-performing region, passing the south-west, with a rise of 10.4% – the largest increase for four months – and an average price of £205,881.

London continues to show the poorest growth: house prices increased just 0.8%, a fall from 1% in September, the lowest level experienced since February 2020.