After experiencing a downward trend for half a year, there’s now an upturn in UK house prices across the nation, as per an analysis from one of the largest mortgage lenders in the UK, Halifax.

In the previous month, there was a notable increase in house purchase costs, marking the first such rise since March. This was primarily attributed to a reduction in the number of properties available on the market, as indicated by the Halifax house price index.

While there was a 1.1% upswing in prices in October, following a 0.3% decline in September, it’s important to note that prices remain lower compared to the same period last year.

These price hikes meant that the average house was sold for around £3,000 more than the previous month, with the average price standing at £281,974, as opposed to £291,248 during the corresponding month last year.

UK House Prices Are Rising According to Halifax.

Halifax is a part of the Lloyds Banking Group, which is the largest mortgage provider in the UK.

The most significant price drops were observed in the southeast of the UK, where prices decreased by 6% over the year, resulting in an average of £374,066.

The data released on Tuesday aligns with the findings of the Nationwide house price index, published the previous week, which also reported an unexpected increase in selling prices.

This development coincides with a decline in mortgage rates from the highs witnessed over the summer, as markets have adjusted to the belief that interest rates have reached their peak.

Meanwhile, the consumer price index, a key measure of inflation, stood at 6.7% in September, down from the 11% peak observed a year ago.

One contributing factor to this price surge is a shortage of available properties on the market, as potential sellers exercise caution when listing their homes, according to Kim Kinnaird, the Director at Halifax Mortgages.

This trend is likely to lead to short-term price increases but doesn’t necessarily indicate a heightened demand from buyers. Kinnaird also noted that while many individuals have seen their income increase due to factors like wage hikes, the ongoing challenges of higher interest rates and overall affordability pressures continue to affect prospective buyers.

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