7 November 2025
If you are covering the latest Halifax house price index, please see the following comment from Ian Futcher, financial planner at Quilter:
“The latest index from Halifax reveals UK house prices rose by 0.6% in October, bringing the average house price to £299,862. This marks a new record high and the biggest monthly rise in UK house prices since January this year. This rise in prices follows the recent trend of a relatively stagnant market ahead of the highly anticipated budget, which is now just a couple of weeks away. Several months of speculation on what is to come has driven caution across all aspects of personal finances, and the housing market had been bearing much of the brunt.
“The market impact of the rumours around possible changes to property taxation has seemingly been countered by lower borrowing costs, which have been very gradually easing affordability constraints. The average mortgage rate dipped below 5% in September for the first time in more than three years, and has done so again this month after rising to just over 5% in October. However, mortgage rates remain relatively high, and the Chancellor’s unusual pre-Budget speech did little more than fan the flames as far as expectations for tax hikes are concerned. This reinforced the pressures on would-be buyers as they consider the affordability of a new mortgage on top of high living costs. A rise in house prices will only further squeeze their finances and could see some adjust their plans.
“The Bank of England’s decision to maintain the base rate at 4% may also give prospective buyers or home movers pause for thought, especially as a further rate cut is widely expected by early next year which could result in buyers holding off in the hopes of securing more favourable rates. While house prices have risen slightly for now, the market may well re-enter its holding pattern until the Chancellor provides some much-needed clarity at the budget later this month.”
