UK house prices soar in October, despite predictions to the contrary

Whilst London rental prices may have dropped recently, a survey from Halifax has claimed that UK house prices surged in October. This is in direct contrast to findings published last week which showed that, after fifteen successive monthly increases, UK house price growth slowed in October.

Prices increased a seasonally adjusted 1.4 per cent compared to a month ago to an average of £217,411. This followed a monthly 0.3 per cent rise in September and exceeded expectations by Reuters of a mere 0.2 per cent rise.

Chief UK and European economist at IHS Global Insight, says: "With housing market activity seemingly coming modestly off its recent lows and the economy currently resilient, house prices may well rise modestly in the near term.

"However, we suspect that house prices will come under increasing pressure as 2017 progresses and may dip modestly over the year, possibly by around 3 per cent.

"We also suspect that business and consumer uncertainty will heighten in 2017, particularly once the UK formally launches divorce proceedings from the EU by triggering Article 50 and difficult negotiations increasingly come to the forefront."

Our property sector specialists at Beavis Morgan have extensive experience in advising individuals and businesses on all aspects of the property market. To find out how we can assist with your property investments or aspirations, contact Steve Govey or your usual Beavis Morgan Partner.