UK house prices rose 0.6 % month-on-month in October, the strongest pace recorded since January, propelling the average property value to a record £299,862 according to lender data.

The annual rate of growth stood at 1.9 %, up from 1.3 % in September and ahead of the 1.5 % forecast by economists.

The rebound follows a 0.3 % decline in September and appears to reflect resilient buyer demand as mortgage approvals reached their highest level so far this year.

A spokesperson for Halifax noted that demand had held up well entering autumn, despite market jitters surrounding the upcoming budget and possible tax changes.

Affordability remains a key constraint.

With average fixed mortgage rates around 4 %, many prospective buyers are choosing smaller deposits or longer term finance to compensate for record-high home prices.

Regional patterns continue to diverge.

Northern Ireland posted the strongest annual growth at approximately 8 %, while London and the South East recorded slight annual price declines.

Analysts say the data dispels fears that the housing market will weaken before the budget, though they caution the tax outlook and cost-of-living pressures could introduce new headwinds.

With the November budget looming, some industry observers expect further market activity to accelerate if clarity emerges on housing taxation.

The month’s data underlines a housing market that remains unexpectedly robust, even as structural affordability challenges persist.