Uncertainty over this month’s budget was not enough to halt the property market, as UK house prices rose 0.6% in October to hit a new record high. The average home now costs $pounds$299,862, according to Halifax, in a surge that defied both forecasts and a dip in prices seen in September.
However, industry experts suggest the headline figures may not tell the whole story. Matthew Thompson, head of sales at estate agent Chestertons, described October’s market as “noticeably calmer.” He noted that “many buyers have paused to see what the budget might bring,” particularly given reports that the chancellor is considering major changes to stamp duty.
Despite this pause, some active buyers were able to secure good opportunities, especially where sellers were willing to negotiate. This underlying activity, combined with strong mortgage approval numbers, was enough to push the national average price higher.
The market is now braced for the Chancellor’s announcements on November 26. Thompson anticipates a rebound in activity after the budget, saying, “Once there is more clarity… we expect buyer activity to pick up as those waiting on the sidelines re-enter the market.”
This suggests the market’s resilience is strong, but a significant portion of buyers and sellers are in a “wait-and-see” mode. While affordability remains a major challenge, with buyers stretching their finances, the primary short-term driver of activity may now be fiscal clarity from the government.