House prices in the UK grew in October at the fastest rate seen in over two years, according to a recent survey. This data, released on Thursday, largely reflects market sentiment before

Finance Minister Rachel Reeves presented her budget at the end of the month.

The Royal Institution of Chartered Surveyors (RICS) reported that its house price balance rose to +16 in October from +11 in September, marking the highest level since September 2022. This rise follows the financial turbulence caused by former Prime Minister Liz Truss’s economic plans, which had unsettled mortgage markets.

The RICS survey, conducted from October 21 to November 7, found that around two-thirds of the responses were submitted before Reeves introduced her budget on October 30, a plan that included significant hikes in taxes, spending, and investment.

Despite the survey’s overall positive outlook—with a notable rise in three-month price expectations to +20 in October from +12 in September—future market conditions remain uncertain.

“The increase in bond yields after the Budget, combined with a general rise in interest rate expectations, is likely to pose challenges for the market in the short term,” commented Tarrant Parsons, RICS’s head of market analysis.

Last week, the Bank of England reduced interest rates for only the second time since 2020, signaling that further cuts would likely be gradual. The Bank has anticipated that the new government’s budget will contribute to higher inflation and economic growth.

Meanwhile, RICS noted worsening conditions for renters, with continued high demand but a shrinking supply of rental properties.

Mortgage lenders Halifax and Nationwide both observed monthly rises in house prices during October.