By Laura McGuire
The cost of a home rose 1.1 per cent in October, breaking a run of six consecutive monthly falls, the latest figures from Halifax can reveal.
According to the report, the typical UK home now costs £281k, up around £3,000 on the previous month.
In the capital house prices remain the most expensive, with the cost of a home in London at £524k, falling 4.6 per cent over the last year.
During the month, property prices dropped by 3.2 per cent on an annual basis, down from 4.5 per cent last month.
Kim Kinnaird, director at Halifax Mortgages, said that 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.”
Consistent rate rises from the Bank of England which have led to higher borrowing rates have been blamed for a slowdown in the housing market over the last year.
Kinnaird said that she expects to see a return to growth in the market by 2025.
She added: “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.”
