prices rose 1.4pc in October, the biggest monthly rise since March,
according to Halifax.
Halifax's closely watched index reported monthly falls in July and
August, and a slight rise in September of just 0.3pc. The jump
in October contrasts with Nationwide's index, which last week
reported that house prices were flat month on month,
although both indices can be volatile.
On a rolling three-month basis, year-on-year growth in the quarter
to the end of October was 5.2pc, down from
5.8pc in the previous period. This is almost half the
rate of growth in the three months to March, of 10pc. The
average price of a home is now £217,411.
The boost in
monthly prices was put down to increased buyer demand, due to
falling mortgage rates, and also a record shortage of homes on
the market, according to the Royal Institution of Chartered
Surveyors (Rics), which was caused partly by price falls in
The Bank of England reported
that mortgage approvals for house purchases rose to a
three-month high in September, and Rics said that buyer inquiries
were the highest since February, suggesting that market
activity is starting to pick up after softening during the year due
to uncertainty over the referendum.
Martin Ellis, a housing economist at Halifax, said: "This
expected slowdown [in house price growth] appears to have been
largely due to mounting affordability pressures, which have
increasingly constrained housing demand."
Andrew Wishart from Capital Economics said: "Data from Halifax
point to house prices stagnating in the third quarter. That echoes
the broad picture outlined by other indices that, while house price
growth slowed in the wake of the referendum result, there is no
evidence of any substantial fall in values."
Capital Economics has forecast that house price growth will slow to
annual rate of 2pc by the end of the year.
Here at JP & Brimelow we are experiencing high demand from
buyers who are willing and able to purchase immediately. If you are
considering a move either now or in the future why not give us a
call to discuss the current market and see how we can help
T. 0161 445 9700 or E. firstname.lastname@example.org