October saw the first increase in UK property prices since March

Halifax, a mortgage company, said on Tuesday that although British house prices reversed six months of continuous declines in October due to a dearth of properties listed for sale, they are still lower than they were a year ago.

Following a 0.3% monthly decline in September, Halifax, a division of Lloyds, said that October saw a 1.1% gain in home prices over the previous month, marking the first increase since March on a seasonally adjusted basis.

The lack of available properties for sale is caused by prospective sellers who seem to be acting cautiously. Instead of being determined by buyer demand, which is still poor overall, this is probably what has increased prices in the short term.

October's average house price was £281,974, almost £10,000 less than it was a year ago, after falling 3.2% from September's 4.5% annual loss in house prices.

The Bank of England stated last week that it was premature to think about lowering interest rates because consumer price inflation was still well above its 2% objective. The bank left interest rates at a 15-year high of 5.25%.

Halifax stated that it anticipated more declines in property values until 2025 saw a resurgence of growth.

(Sources: investing.com, reuters.com)