House prices in the UK experienced a 1.1% increase in October, marking the first rise in six months, according to the Halifax. However, the lender predicts a decline in values over the coming

year.

The average property value now stands at £281,974, thanks to this recent upturn. But the Halifax attributes the increase to a shortage of homes available for sale, as buyer demand remains subdued.

The lender expects prices to continue declining until 2025, driven by rising interest rates and the financial pressures of everyday life.

In comparison to the same period last year, house prices in October were down by 3.2%, as per Halifax's data.

Kim Kinnaird, director of Halifax Mortgages, commented, "Prospective sellers seem to be adopting a cautious approach, resulting in a limited supply of homes for sale. This likely contributed to short-term price strength, rather than prices being bolstered by overall weak buyer demand."

The Bank of England had previously been steadily increasing interest rates to combat surging inflation. This move resulted in higher mortgage rates for homeowners. Although the Bank has kept rates unchanged at 5.25% in its last two meetings, a rate reduction is not expected in the near future.

Given this outlook, Halifax anticipates "a further overall decline in house prices, with a return to growth from 2025."