Halifax House Price Index: October 2023

It’s time to take a look at the Halifax House Price Index for October 2023, which was published today. 

The data shows that UK house prices experienced a notable shift in October, marking a departure from a six-month trend of decline. According to recent data, prices increased by +1.1% on a monthly basis, with the average house price now standing at £281,974 – a noteworthy rise of nearly £3,000 compared to the previous month. While this surge in prices may appear promising at first glance, the broader context reveals some important nuances. 

Challenges for buyers: 

The real estate market continues to face challenges. Higher interest rates and broader affordability concerns present obstacles for potential buyers, making it more difficult for them to enter the market. 

Looking ahead: 

Over the medium term, the housing market’s path is uncertain. Financial markets currently do not anticipate a decline in the Bank of England’s Base Rate in the near future. As a result, experts anticipate that house prices may continue to face downward pressure, with a potential return to growth not expected until 2025.  

In summary: 

• Average house prices rose by +1.1% in October, compared to a fall of -0.3% in September 
• Property prices dropped by -3.2% on an annual basis (vs -4.5% last month) 
• Typical UK home now costs £281,974, up around £3,000 on the previous month 
• South East England continues to see largest annual decline in house prices 

The next Halifax House Price Index is scheduled for release on Thursday 7th December 2023.