Sarah Coles, head of personal finance at Hargreaves Lansdown, said: “Buyers refused to be spooked in October, with prices continuing to inch forward despite the worries lurking in the shadows.
“Budget-related uncertainty is hovering in the background, along with weakness in the jobs market and sticky inflation.
“However, prices rose, and mortgage approvals stuck around their pre-pandemic levels.
“Separate figures from the Bank of England actually show mortgage approvals rising further, so there’s every chance that the market continues to stand its ground through the difficult winter months.
“Along with the fact that average wages continue to rise faster than house prices, more than six months of falling mortgage rates will be helping convince buyers to take the plunge, and better deals that have emerged in the last week or so should help support the market too.
“We’ve seen some big lenders cut their rates, as inflation figures came in lower than expected and the market started pricing in earlier cuts.
“These aren’t huge changes, but it should help ease affordability a little.
“Another reason for prices rising will be that although buyer numbers are dropping, sellers are also getting thinner on the ground, which is keeping a floor under valuations.
“The risk is that as the Budget approaches on November 26, there is a pause in activity while buyers and sellers wait to see where they stand.
“As prices continue to rise, affordability will also rely on robust deposits, so the challenge is on for first-time buyers.
“If you’re in this position, it’s worth trying to get all the help you can, whether that’s from the bank of mum or dad, or the government bonus from a Lifetime ISA.”
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