House prices in October 2025 were +0.6% higher than the same month a year earlier.
If you keep an eye on the property market or you are thinking about moving, the latest Halifax House Price Index gives you a good feel for what is happening right now. The newest figures show that prices have picked up again, and October saw the strongest monthly rise since January.
Headline figures for October 2025
- Average property price: £299,862
- Monthly price change: +0.6 percent
- Quarterly price change: +0.5 percent
- Annual price change: +1.9 percent
House prices have made gains for the fourth time in five months, with the average home now edging up to a new record. The monthly rise of +0.6 percent equals an increase of about £1,647, which is a noticeable shift compared with September’s slight fall of -0.3 percent.
What this means for you
These numbers suggest that demand from buyers is still fairly strong. Mortgage approvals have reached their highest point this year, which shows that many people are still confident enough to move forward with purchases. Even with some market uncertainty, activity has held up better than expected.
If you are planning to buy, this kind of steady price growth can work in your favour if you are prepared and know your budget early. If you are selling, the record-high average prices could give you a bit more confidence about listing your home.
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Why prices are rising
According to Halifax, buyer demand has stayed resilient going into autumn. More mortgages are being approved, and despite the challenges around affordability, a lot of buyers are still pressing ahead. Some key reasons include:
- Fixed mortgage rates are sitting around 4 percent and are expected to ease further
- Many buyers are using longer mortgage terms to keep monthly costs manageable
- Incomes have been rising faster than house prices for nearly three years
- Some buyers are choosing smaller deposits to make moving more achievable
Affordability is still tight for plenty of people, especially with everyday essentials costing more and squeezing disposable income. Even so, the market has shown it can keep moving, as long as buyers adjust how they structure their mortgages. If you feel unsure about what you can realistically borrow, you can always speak to us and we will guide you through your options.
What is happening in different regions
The picture across the regions is mixed. Some areas are seeing stronger growth than others, while a couple are still seeing slight price falls.
Northern Ireland continues to lead the pack, with prices up +8.0 percent over the year. The average property there now costs £219,646.
Scotland has seen growth of +4.4 percent, taking the average home to £216,051.
Wales has recorded yearly growth of +2.0 percent, with average prices sitting at £229,558.
In England, the North East stands out with annual growth of +4.1 percent, bringing the average home to £180,924.
London and the South East have seen small declines of -0.3 percent and -0.1 percent. Even with this small dip, the capital remains the most expensive area, with average prices now £542,273.
This regional split is not unusual. Areas with lower starting prices often grow more quickly as they remain more accessible for first-time buyers and families. Higher-priced areas can be slower to shift because buyers often need bigger incomes or larger deposits.
Housing activity and approvals
House sales have also been rising. HMRC data shows that sales increased slightly in September, reaching 95,980 transactions. When you compare the last three months with the previous three, activity is up by nearly +18 percent.
Mortgage approvals tell a similar story. The Bank of England recorded 65,944 approvals in September, up +1.5 percent from the month before and just above last year’s level. Approvals are a good early indicator of future sales, so this rise suggests the market will likely stay active for the next few months.
However, surveyors are reporting that there is still some weakness, particularly in new buyer enquiries. The latest RICS survey shows the third month of negative enquiries, although agreed sales have improved slightly compared with the previous report. This shows that although demand exists, buyers are being more careful and selective.
What this could mean for the rest of the year
The steady price growth and rising mortgage approvals suggest the market may keep climbing modestly, as long as borrowing costs continue to ease. Affordability will remain the biggest barrier for many people, but more stable interest rates could slowly help with this.
If you are thinking about buying, remortgaging, or moving, this is a good moment to get clear on your numbers. With average prices at a record high, it helps to know exactly where you stand before you start making plans. You do not need to wait for a perfect market, but you do need a clear plan.
How Kerr and Watson can help you
Our role is to help you understand what these shifts mean for your situation, not just in theory but in real numbers. Whether you are a first-time buyer, a mover, or someone planning ahead for a remortgage, we can walk you through your options, the current rates, and how lenders might view your application. The right advice can make the whole process feel far less confusing.
If you would like personalised guidance or want to see what you could borrow, get in touch with us and we will help you take the next step.
The full report for more insights on the current state of the UK housing market: Halifax Price Index October 2025
Source: Halifax
