House prices in England increased in October after a 6-month decline
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The average house price in England increased by 1.1 percent on a monthly basis in October. With this increase, the downward trend in prices that had been observed for 6 months ended.
EnglandAccording to the Halifax Housing Index data published every month, the average price of a house in the country was 281 thousand 974 pounds in October. This figure was £3,000 less in September.
The average house price in England decreased by 3.2 percent on an annual basis in October. The average house price in the country decreased by 0.3 percent on a monthly basis and 4.5 percent on an annual basis in September.
Housing demand in the UK is weak, but due to high rental prices, the demand of first-time homebuyers was one of the factors that determined the increase in October.
Housing prices decreased on an annual basis in all cities and regions. The largest decrease was recorded in South East England with 6 percent. Scotland was the place where prices remained the most resilient, falling 0.2 percent on an annual basis.
Despite the 4.6 percent decrease on an annual basis, London retained its title as the “city with the highest average house price” at 524 thousand 57 pounds.
DECREASE IN SUPPLY
Halifax Mortgage Director Kim Kinnaird stated that home sellers took a cautious approach, which led to a contraction in supply.
Pointing out that this situation increased housing prices in the short term, Kinnaird said, “In fact, the increase in housing prices was driven by low supply rather than demand, demand is still low in general. While people’s incomes are increasing with wage increases, high interest rates and other economic pressures continue to pose difficulties for buyers.
“Considering the expectation in the markets that the Bank of England will not reduce interest rates in the short term, we predict that house prices will continue to decline and will only start to increase again in 2025.” he said.
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