UK house prices rose by +0.6% in October, marking the largest monthly increase since January and reversing a -0.3% fall in September. It was the fourth time in five months that prices have risen, according to the data from lender Halifax.
The average UK home now costs £299,862, setting a new record high, while annual growth strengthened to +1.9% from +1.3% a month earlier.
“October saw the biggest monthly rise in UK house prices since January this year, with the value of the average UK home increasing by +0.6% (£1,647)," said Amanda Bryden, head of mortgages at Halifax. "
That brings the typical property price up to £299,862 (the highest on record), while annual growth also increased to +1.9% (from +1.3%).”
Bryden said demand remained firm into autumn. “Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year.”
According to the latest figures, mortgage approvals increased by +1.5% in September to 65,944, the highest monthly total of 2025. Year-on-year, approvals were up +0.5%, highlighting the market’s resilience.
Bryden acknowledged that affordability pressures persist. “There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch,” she said.
She added that rising living costs continue to limit household spending power. “Rising costs for everyday essentials are also squeezing disposable incomes, which affects how much people are willing or able to spend on a new property.”
Even so, the overall market has proven stable. “Even so, while there has been some volatility, the market has proven resilient over recent months, as many buyers opt for smaller deposits and longer terms to help make the numbers work,” said Bryden. “With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue.”
Regionally, Northern Ireland led the UK in annual price growth at +8%, with average values rising to £219,646. Scotland followed with +4.4% growth to £216,051, while the North East of England posted +4.1% to £180,924. In contrast, London and the South East recorded modest annual declines of -0.3% and -0.1%.