House prices in the UK increased by 0.2% in October, the fourth monthly increase in a row, hitting new record highs.

The average house price was £293,999, passing a previous peak set in June 2022 (£293,507).

Property values increased by 3.9% annually, slowing from a 4.6% increase in September.

Amanda Bryden, head of mortgages, at Halifax, said: “Average UK house prices nudged up 0.2% in October, continuing the positive momentum of recent months.

“This brought the annual growth rate to 3.9%, slightly lower than in September.

“The average property price has reached a record high of £293,999, surpassing the previous peak of £293,507 set in June 2022, towards the end of the pandemic-era ‘race for space’.”

Borrowing constraints remain a challenge for many buyers, and the end to Stamp Duty relief looming early next year.

Alice Haine, a personal finance analyst at Bestinvest by Evelyn Partners, an online investment service, said: “While the UK residential property market enjoyed a post-election resurgence over the summer as affordability concerns eased, the outlook from here is mixed.”

She added: “Mortgage rates may not behave as people hope. Volatile swap rates in the wake of the Budget have been a cause for concern as they raise the risk of borrowing costs edging up.”

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Nathan Emerson, CEO of Propertymark adds: “Following the recent Budget there is potential the housing market may see an increased momentum across the winter months, as buyers potentially look to make their move ahead of proposed Stamp Duty increases from 1 April 2025.

"Increases will impact buyers across England and Northern Ireland, with some seeing Stamp Duty costs typically increase by around £2,500.  However, it remains important to view the wider picture and that continued house price growth, even in the short to medium term, will help offset such tax expenditures for the highest percentage of those looking to purchase after the threshold change date.”

Guy Gittins, chief executive of estate agent Foxtons, said of the house price index: “A fourth consecutive month of positive growth demonstrates the current strength of the UK property market and now that the dust has settled on last week’s autumn Budget, the outlook continues to be very positive.”

Here are average house prices followed by the annual increase, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transactions):

  • East Midlands, £242,189, 4.4%
  • Eastern England, £333,741, 3.1%
  • London, £543,308, 3.5%
  • North East, £172,730, 4.0%
  • North West, £235,587, 5.9%
  • Northern Ireland, £204,242, 10.2%
  • Scotland, £206,480, 1.9%
  • South East, £387,587, 3.2%
  • South West, £303,362, 3.3%
  • Wales, £225,543, 5.6%
  • West Midlands, £257,287, 4.7%
  • Yorkshire and the Humber, £211,629, 5.3%