Halifax says October uptick lifts average home value to nearly £300,000 despite budget-related uncertainty.

UK house prices accelerated in October at their quickest pace since the start of the year, defying jitters over potential tax changes in the forthcoming budget, according to new figures from Halifax.

The lender reported a 0.6% month-on-month rise, reversing September’s surprise 0.3% fall and outpacing economists’ expectations for a 0.1% increase. The jump pushed the average price of a UK home to a record £299,862. Annual growth also came in stronger than forecast, at 1.9% compared with predictions of a 1.5% rise.

Amanda Bryden, head of mortgages at Halifax, said buyer demand had remained “resilient” heading into autumn, with mortgage approvals hitting their highest level so far this year. But she warned that affordability pressures persist, with buyers increasingly relying on smaller deposits and longer mortgage terms.

Although average fixed mortgage rates remain around 4% and are expected to ease further, record-high property prices continue to make moving “feel like a stretch” for many households, Bryden said. Rising everyday costs are also squeezing disposable income and limiting what buyers can afford.

October’s stronger-than-expected growth suggests many buyers have looked beyond concerns that chancellor Rachel Reeves may overhaul property taxes in her 26 November budget. The Guardian reported in August that one option under consideration is replacing stamp duty with a new levy on homes valued above £500,000.

Some estate agents expect activity to pick up from December, helped by the later-than-usual timing of the budget. Matthew Thompson, head of sales at Chestertons, said October was “notably calmer” as many buyers waited to see how tax policy might shift. Still, he said some buyers secured attractive deals where sellers were willing to negotiate.

Bryden added that with house prices rising more slowly than incomes for nearly three years, affordability should continue to improve “gradually”.

In the property sector, shares in Rightmove fell sharply on Friday, plunging as much as 25% before recovering to a 12% loss, after the company warned that profit growth is expected to slow. The online estate agent forecast underlying operating profit growth of 3% to 5% in 2026, down from 4% to 9% in 2024 and 2025, though it said investment in artificial intelligence would support stronger long-term performance. Photo by Basher Eyre, Wikimedia commons.