House prices in the UK grew at the fastest pace in January since January, a leading performance of the property index, with the continuation of tax uncertainty in this month’s budget.
Prices increased by 0.6% month-on-month in October pushing the average cost of a UK home to a record high of £29,862, according to Halifax.
This marked a slight departure from the unexpected 0.3% drop in prices recorded in September and was stronger than the rise in the economists’ poll. On an annual basis, house prices also increased by 1.9%, with the figure beating previous estimates for a 1.5% increase.
“Demands from buyers come autumn, despite a degree of uncertainty in the market,” said Amanda Bryden today, “said Amanda Bryden today,
However, affordability continues to be a challenge, with many buyers opting for smaller deposits and longer terms to help the numbers work.
Although the average rates of mortgages continue to go about 4%, and are likely to continue to improve in the coming months, as a future homebousers, said Bryden.
“The increase in costs for daily necessities also affects incomes, which affects which people are willing or able to spend on a new property,” he added. “However, while there has been an upset, the market has proven to be lively in recent months.”
October’s 0.6% rise has buyers ready to look past jitters over potential taxes in Rachel Reeven’s Budget on 26 November. The Guardian reported in August that the Chancellor was considering replacing stamp duty with a new levy on the sale of homes worth more than £500,000.
Some industry experts expect a further increase in home buying activity from December to Sunday, which held the budget for almost a month set in fiscal activity last year.
“The property market in October has obviously attracted a lot of buyers to see what the budget can do,” Matthew Thompson, head of agent Farewell, said.
“Some buyers remain active and eat good opportunities, especially where sellers are willing to negotiate with the Chancellor, we have more activity to participate in the channels that choose the market.”
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