Halifax has just published its HPI for October 2025, revealing that residential property prices in the UK rose 1.9% in October, with the average house price standing at £299,862.
The index said in its report published this morning that property went up by 0.6% month-on-month, the biggest monthly growth since January, and 0.5% quarter-on-quarter.
Amanda Bryden, head of mortgages at Halifax, said: “There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.
“Rising costs for everyday essentials are also squeezing disposable incomes, which affects how much people are willing or able to spend on a new property.”
Industry reaction:
Tom Bill, head of UK residential research at Knight Frank, said: “Stable mortgage rates have supported demand in recent months and the bank rate is now on a downward path. But a tax-raising Budget will curb buying power and weigh on sentiment, keeping a lid on housing market activity next year.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: “Once again, the market is baring its teeth. Although sentiment is split between upsizers who believe prospects will improve and downsizers who think it may deteriorate as a result of Budget measures, fortunately enough buyers and sellers have confidence in longer-term prospects.
“The Chancellor may have confirmed taxes will be rising but encouragement can be taken from the Bank of England’s comments that inflation has peaked and that direction of travel for interest rates is certainly downward in the coming months.”
Matthew Thompson, head of sales at Chestertons, commented: “October’s property market was noticeably calmer as many buyers have paused to see what the Budget might bring. Some buyers remained active and were able to secure good opportunities, particularly where sellers were willing to negotiate. Once there is more clarity from the Chancellor’s announcements, we expect buyer activity to pick up as those waiting on the sidelines re-enter the market.”
Nathan Emerson, CEO of Propertymark: “Any rise in house prices is a welcome sign of growing confidence in the UK housing market. It suggests that demand remains strong and that recent economic adjustments are beginning to bear fruit. This optimism also arrives at a time when the UK government’s ambition to deliver 1.5 million new homes in England edges closer to becoming law, a potentially transformative milestone for supply.
“However, with stamp duty across England and Northern Ireland becoming a political flashpoint ahead of the Autumn Budget and a flurry of possible housing policy leaks, the drawn-out uncertainty risks unsettling both buyers and sellers.
“Housing is the heartbeat of the UK economy, so policymakers should be focused on delivering stability and reforms that encourage movement, investment, and growth, not hesitation.”
Amy Reynolds, head of sales at Antony Roberts: “Anecdotally, we were expecting it to be very quiet in the run-up to the Budget, but that hasn’t been the case. We’ve agreed a high number of sales – mainly freehold homes – with prices reaching up to £2.5m.
“It may be that some buyers are moving now to hedge their bets in case the Budget proves less property-focused than first expected. A measured Budget and a rate cut early in 2026 would be the ideal combination to unlock more momentum in the market.”
Verona Frankish, CEO of Yopa: “Despite the economic headwinds and political noise ahead of the Autumn Budget, it seems as though the rush to complete before Christmas is well and truly on.
“A late seasonal surge in market activity has not only helped the monthly rate of house price growth to rebound, but we’ve also seen the annual rate of increase strengthen as well.
“This is the real evidence of improving market health and, all in all, we’re set to finish the year on a very strong footing, all things considered.”
Marc von Grundherr, director of Benham and Reeves: “The property market continues to display remarkable consistency given the wider economic backdrop, with the latest Halifax figures showing that the monthly rate of growth has bounced back following a marginal decline in September.
“Buyers remain active, mortgage approvals are robust and, even with the Autumn Budget looming, many are pressing ahead to complete before Christmas.
“The underlying message is one of steady resilience rather than dramatic recovery, and that’s no bad thing.”
Shepherd Ncube, founder and CEO of Springbok Properties: “While the latest data shows small but positive steps for the market, the reality on the ground remains far more testing for sellers.
“Market hesitation is rife and whilst sellers are securing a fair price, it’s taking many months before they find a buyer willing to commit.
“Those with ambitions of moving Christmas may well find themselves disappointed, even if they already have a buyer, as the overarching air of market instability is also leading to a greater propensity for sales to fall through at the final hour.”
Jason Tebb, president of OnTheMarket: “The housing market continues to demonstrate its resilience, shaking off external economic concerns and holding up remarkably well even as speculation continues as to what the Budget might hold in store later this month.
“Confidence among buyers and sellers has undoubtedly been boosted by five base rate cuts over the past 14 months. Yesterday’s hold in rates for the second consecutive month, while not delivering the further reduction borrowers would have wanted, does suggest a stability in the market which is encouraging. With the vote extremely close, and further reductions expected, this should help improve affordability, stimulate the market and encourage activity into the new year.”
