Average UK house price jumped to new record high in October, says Halifax

Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “House prices inched up to a new record high in October, but they’re hardly shooting the lights out.

“Prices were up 0.6 per cent in a month, after falling in September.

“Average prices were also up 1.9 per cent over the year – which is better than last month, but it’s less than half the pace of growth we were seeing this time last year, and is well behind inflation.

“This small bump risks being flattened by buyer jitters if the Budget brings bad news.

“Halifax was keen to highlight some of the positives. It was the biggest monthly rise so far this year, and they’ve seen mortgage approvals increase.

“Prices rising more slowly than wages, and mortgage rates easing very slightly, should also bring more homes within reach.

“The fact that the Bank of England thinks inflation has peaked, so more rate cuts could be on the way, will help.

“However, this is like spotting the slivers of blue sky on a November morning.

“The positives are there, but you have to overlook an awful lot of gloom to see it.

“Higher house prices, a weakening employment market, the rising cost of living and worries over what the Budget might hold, all risk derailing house purchases.

“There may be modest growth from the market in the immediate future, but if the Budget knocks lumps out of buyer enthusiasm, all bets are off.

“However, slower house price rises mean first-time buyers have more time to work on their deposit, top up their Lifetime ISA, and build their emergency savings.

“This should put them in a decent position to negotiate a deal on their first home when the time is right.”