Average house prices rose by 1.1% in October, compared to a fall of 0.3% in September, according to the latest Halifax House Price index.
This monthly rise breaks a run of six consecutive monthly falls however prices remain some 3.2% lower than this time last year and down 1.9% on the previous quarter.
A typical UK home now costs £281,974, up around £3,000 on the previous month.
House Buyer Bureau managing director Chris Hodgkinson points out that we may have seen the market take two steps backwards in recent months, but the latest figures suggest it has now taken one step forwards, with buyer confidence starting to grow once again.
“For those looking to sell, this means you may well be able to achieve that little bit more for your home. However, tread with caution as pricing with too much optimism will deter buyers and result in a far longer transaction timeline.”
Benham and Reeves director Marc von Grundherr comments: “It’s looking like Christmas has come early for the nation’s homeowners, as the market appears to be making a late rally, buoyed by a heightened degree of buyer activity following the hold on interest rates”.
House prices remain lower on an annual basis, but it looks as though we have seen a stop to the rot that was materialising over the last six months.”
Antony Roberts estate agency director Alex Lyle is cautiously optimistic. “There is a good level of stock available but anything coming onto the market now needs to be priced at the right level as there isn’t the depth of demand in terms of enquiries compared with the start of the year.
“Our business is all about confidence and two consecutive holds in interest rates are extremely welcome, helping buyers plan for the future.
Lyle adds: “Transactions are taking time and negotiations can be drawn out. But there are opportunities for buyers who are brave enough not to sit on the fence with an autumn window where competition is more muted and vendors more realistic.”
MT Finance director Tomer Aboody believes some resurgence in pricing in October reflects buyers either fed up of waiting or deciding that now is a good time to buy, with rates slightly lower than recent times.
“With affordability still difficult, not many buyers are able to get on or move up the ladder, but the ones who can are faced with lower stock levels which in turn is maintaining price levels”.
He adds: “’A government stamp duty intervention must surely come soon in order to give the market some much-needed stimulation.’
