House prices across the UK experienced a slight rise in October after six months of falls according to the latest set of data released by Halifax.

The annual picture shows that over the preceding two months show drops in the selling value of falls, based on mortgages completions, including Northern Ireland.

The monthly update from Halifax shows that in Northern Ireland there was an annual decline of 0.5% with an average house price of £183,922.

The figures are based on Halifax’s own figures, but broadly are in line with other lenders such as Nationwide.

Halifax’s data across the UK in terms of mortgages show 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 compared to -4.5% last month.

Kim Kinnaid, Director, Halifax Mortgages, 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. “

The director added that the current base rate from the Bank of England indicated the annual decline in prices will continue.

“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 £40,000 above pre-pandemic levels.”
Halifax believes that factors such as cost of living, high interest rates on all lending and the current inflation figures were contributing to the fall in house prices.

“Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale,” she said. 

“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 Halifax figures also show Despite weakness in overall buyer demand, the first-time buyer market has held up relatively well.

“Buying a first home remains attractive for many, especially against the backdrop of rental prices increasing.

“The latest house price data shows prices for first-time buyers are down -2.4% annually, a notably smaller fall than the market generally (-3.2%), over the past year,” their statement on the October report added.