E.surv has reported that the average sale price of a home in England and Wales in October increased month-on-month by 0.2%, or around £600, to £354,800.

On an annual basis, average prices in October are about 3.4% lower than a year ago. This is a slight improvement on September but according to e.surv is still not materially different from the situation at the start of 2024.

Prices continue to be about £24,000 (more than 6%) below the previous peak reached in late 2022.

“The markets suggest there will be more inflationary pressure ahead but for now, buyers should take advantage of the improved affordability”

Richard Sexton, director at e.surv, said: “This month our data, which includes cash transactions, showed the average sale price of a home in England and Wales in October moved up to £354,800, the first monthly rise in our index for six months and one that wiped out the fall of the previous month.

“Easing cost of living pressures, which have been helped this week by the cut in the Bank of England Base Rate, mean affordability will continue to improve as lenders’ standard variable rates follow suit.

UNCERTAIN FUTURE

“It remains to be seen if more cuts are in the pipeline. The markets suggest there will be more inflationary pressure ahead but for now, buyers should take advantage of the improved affordability – especially in light of the decision in the budget to return nil Stamp Duty thresholds back to their lower pre-September 2022 levels from April 2025.

“The Budget overall focussed on the long-term supply of housing and delivered nothing in terms of fiscal support for buyers in any market which is why interest rates will remain key over the coming months.”