Average UK house price hits record £270,027

Princes have risen for the fourth straight month

The average property value grew by 0.9 per cent in October. Getty Images

The average UK house price hit a record high of £270,027 in October, according to an index.

The average property value grew by 0.9 per cent in October – showing an increase of more than £2,500 during the month, Halifax said.

Annual house price inflation accelerated to 8.1 per cent, from 7.4 per cent in September.

Halifax said it is the first time the average UK house price has topped £270,000 ($363,079).

Halifax put average house prices about £20,000 higher than a separate index run by Nationwide Building Society, with studies using different methods to track average prices.

Earlier this week, Nationwide said that the average UK house price had hit a new record for its index of £250,311.

Wales is the strongest performer across the UK, with annual house price inflation of 12.9 per cent, according to Halifax’s index.

Russell Galley, managing director of Halifax, said: “With prices rising for a fourth straight month, the annual rate of inflation now sits at 8.1 per cent, its highest level since June.

“One of the key drivers of activity in the housing market over the past 18 months has been the race for space, with buyers seeking larger properties, often farther from urban centres.

“Combined with temporary measures such as the cut to stamp duty, this has helped push the average property price up to an all-time high of £270,027.

“Since April 2020, the first full month of lockdown, the value of the average property has soared by £31,516 (13.2 per cent).”

He said that first-time buyers, supported by parental deposits, have improved mortgage access and low borrowing costs have also helped to drive price growth in recent months.

Mr Galley said: “First-time buyer annual house price inflation (9.2 per cent) is now at a five-month high, and has pushed ahead of the equivalent measure for home movers (8.1 per cent).

“More generally, the performance of the economy continues to provide a benign backdrop to housing market activity. The labour market has outperformed expectations through to the end of furlough, with the number of vacancies high and rising relative to the numbers of unemployed.

“With the Bank of England expected to react to building inflation risks by raising rates as soon as next month, and further such rises predicted over the next 12 months, we do expect house-buying demand to cool in the months ahead as borrowing costs increase.

“That said, borrowing costs will still be low by historical standards, and raising a deposit is likely to remain the primary obstacle for many. The impact on property prices may also be tempered by the continued limited supply of properties available on the market.”

Here are average house prices in October and the annual increase, according to Halifax:

East Midlands, £221,999, 8.4 per cent

Eastern England, £314,695, 7.5 per cent

London, £514,907, 0.8 per cent

North East, £156,502, 7.3 per cent

North West, £205,881, 10.4 per cent

Northern Ireland, £169,308, 11.3 per cent

Scotland, £190,023, 8.6 per cent

South East, £365,934, 7.3 per cent

South West, £280,460, 9.8 per cent

Wales, £198,880, 12.9 per cent

West Midlands, £228,141, 7.0 per cent

Yorkshire and the Humber, £188,095, 8.1 per cent