UK house prices jump 0.9% in October

British house prices rose for a fourth month running in October in the latest sign of strong momentum in the housing market, mortgage lender Halifax said on Friday.

House prices rose by 0.9 per cent month-on-month in October following a 1.7 per cent rise in September, Halifax said.

It brought the average house price to 270,027 pounds ($364,374)- up 8.1 per cent on October 2020 and marking the strongest annual growth rate for four months.

Although the Bank of England failed to raise interest rates as many investors expected on Thursday, Halifax said likely increases in borrowing costs over the coming months should dampen demand.

“That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the

primary obstacle for many,” said Russell Galley, managing director of Halifax.

“The impact on property prices may also be tempered by the continued limited supply of properties available on the market.”

Like other countries, Britain experienced a stampede for bigger houses outside of city centres during the Covid-19 pandemic, pushing prices higher. Temporary tax breaks on property purchases added to the boom.