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UK House Prices Show First Uptick Since March Amid Ongoing Shortage

Halifax, England’s largest mortgage lender, has reported a positive change in the UK housing market, with house prices in England edging up for the first time in October. This comes after a consistent decline over the past six months, primarily due to a shortage of available homes for sale, although prices remain lower than the previous year.

According to Halifax, home prices in the UK increased by 1.1% in October, marking the first monthly rise since March. When analyzed on a yearly basis, house prices experienced a 3.2% decline in October. However, this was a milder drop compared to the 4.5% decrease observed in September. The average house price in the UK now stands at £281,974 ($347,279), which is slightly less than the previous year by nearly £10,000.

These developments in the UK housing market have coincided with the recent decision by the Bank of England (BoE) to maintain interest rates at a 15-year high of 5.25%. The BoE expressed the view that it was premature to consider a rate cut, particularly in light of the fact that inflation, as measured by the Consumer Price Index, continues to significantly surpass the 2% target.

Halifax anticipates that house prices may continue to decrease further before ultimately rebounding and experiencing growth in 2025. This projection reflects the complex dynamics at play in the UK’s property market, driven by both demand and supply factors.

The improvement in the housing market, as seen in October’s price increase, underscores the adaptability of the UK real estate sector and its resilience amid evolving economic conditions.

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