UK House Prices Surge in October to Highest Level Since Jan

British property prices saw their sharpest monthly rise since January, according to data from Halifax released on Friday, signaling steady demand ahead of Finance Minister Rachel Reeves’ upcoming budget on November 26.

House prices climbed 0.6% in October, bouncing back from a 0.3% fall in September, reaching a record average of £299,862 ($402,445). Economists had predicted only a modest 0.1% increase, making this jump the strongest monthly gain in nearly a year. On an annual basis, prices were up 1.9%, higher than the 1.5% expected, and ahead of September’s 1.3% increase.

Despite the overall rise, challenges for buyers remain. Halifax highlighted that affordability continues to be an issue, even as mortgage approvals reach the highest levels of the year. While London saw prices dip by 0.3% over the year, Northern Ireland recorded the fastest growth at 8%.

The housing market has shown resilience even amid uncertainty around economic prospects and potential new taxes on homes. Recent Bank of England decisions to hold interest rates at 4%—with hints of a possible rate cut in December—may further support property prices in the coming months.

Data from rival lender Nationwide last week also indicated growth, with house prices rising 0.3% in October and annual inflation reaching 2.4%.