Average house prices rose by 1.1 per cent in October when compared to September, ending the six months of consecutive falls.
The Halifax Price Index reported that the average house price is now £281,974 - an increase of almost £3,000 on the previous month.
However, while a rise was reported on a monthly basis, on a yearly basis prices continued to fall with a reported decrease of 3.2 per cent compared to October 2022.
This yearly fall rate was slower than in September when average prices were down by 4.5 per cent.
MT Finance director, Tomer Aboody, said: “Some resurgence in pricing in October reflects buyers either fed up with waiting or deciding that now is a good time to buy, with rates slightly lower than recent times.
“With affordability still difficult, not many buyers are able to get on or move up the ladder, but the ones who can are faced with lower stock levels which in turn is maintaining price levels.
Additionally, Purplebricks CEO, Sam Mitchell, said: “We’ve seen an unexpected boost in October following a quiet September.
“The Bank of England held its nerve on interest rates, an extremely positive decision for the housing market, which has caused an uptick in demand for the last week of September and through October.”
He added that, with a second hold this month, he expects this trend to continue into the future.
Meanwhile, Halifax Mortgages director, Kim Kinnaird, commented: “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”.
First-time buyers
The index also reported that, despite weakness in overall buyer demand, the first-time buyer market has held up relatively well as buying a first home remains attractive for many with rental prices increasing.
The latest house price data shows prices for first-time buyers are down 2.4 per cent annually, a notably smaller fall than the market generally, which fell by 3.2 per cent over the past year.
Overall, however, the housing market remains subdued, with October marking the first rise in the cost of a typical home since March.
All UK nations and regions saw house prices decline on an annual basis with the greatest fall being seen in south east England where prices decreased by 6 per cent over the past year.
The most resilient annual house prices were found to be in Scotland which were down just 0.2 per cent, with homes now costing £202,608 on average.
London continues to have the highest average house price in the UK, at £524,057, despite falling by 4.6 per cent over the past year.
tom.dunstan@ft.com
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