(Alliance News) - UK house prices increased in October, ending a streak of six successive monthly falls, according to mortgage lender Halifax on Tuesday.
The average house price increased 1.1% in October from September. Prices had fallen 0.3% in September from August. On an annual basis, prices were 3.2% lower, easing from September's 4.5% decrease.
Halifax Mortgages Director Kim Kinnaird said: "Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale. This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall. While many people will have seen their income grow through wage rises, higher interest rates and wider affordability pressures continue to be challenges for buyers.
"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 GBP40,000 above pre-pandemic levels."
Last week, the Bank of England kept bank rate at 5.25%. It was the second successive hold, following one in September, which ended a streak of 14 consecutive hikes since December 2021. The BoE had rapidly shot up the bank rate from a Covid-19-induced low of 0.10%.
On Monday, the BoE's Huw Pill said interest rates will probably be higher in the long run than they were in the 2010s, but that they are likely to come down from current 15-year highs.
By Eric Cunha, Alliance News news editor
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