House prices in the UK increased by 1.1% in October, marking the first rise in six months, according to data from the Halifax. The average property value reached £281,974, but the lender attributes this rise to a shortage of homes for sale rather than increased demand from buyers.
The Halifax expects prices to fall until 2025 as buyers contend with higher interest rates and cost-of-living pressures. House prices in October were down 3.2% compared to the same point in the previous year.
While demand remains weak, the first-time buyer market has held up relatively well due to the attractiveness of homeownership compared to rising rental costs.