The average UK house price stood at £299,862 in October, which is close to a new record, Halifax has revealed.

The bank’s latest House Price Index showed that house prices increased by 0.6% month-on-month in October, which is the largest jump since January. The latest figure comes after prices dropped by 0.3% in September.

Year-on-year, house prices jumped by 1.9% in October, following a 1.3% annual increase in the previous month.

Halifax added that mortgage approvals have also risen to the highest levels since January, indicating "resilient demand".

Head of mortgages at Halifax, Amanda Bryden, said: "Demand from buyers has held up well coming into autumn, despite a degree of uncertainty in the market, with the number of new mortgages being approved recently hitting its highest level so far this year.

"There is no doubt that affordability remains a challenge for many. Average fixed mortgage rates are currently around 4% and likely to ease down further, but with property prices at record levels, moving home can feel like a stretch.

"Rising costs for everyday essentials are also squeezing disposable incomes, which affects how much people are willing or able to spend on a new property."

Northern Ireland continued to post the strongest rate of annual property price inflation, with property prices increasing by 8% year-on-year to £219,646.

House prices in Scotland (£216,051) and Wales (£229,558) rose year-on-year by 4.4% and 2%, respectively.

In England, the North East was the region to record the highest annual growth rate in October, with property prices rising by 4.1% to £180,924. House prices in London dropped by 0.3% year-on-year, to £542,273. However, the capital was still the region with the most expensive house prices in the UK.

Personal finance analyst at Bestinvest, Alice Haine, stated that the market has remained resilient, amid speculation around the Budget.

She concluded: "Despite the uncertainty, the market can take some comfort from the Bank of England’s more positive outlook on future interest rate cuts following its decision yesterday to hold the headline rate at 4% for the second time.

"Mortgage rates have eased this year, helped by five interest rate cuts since August last year, with further improvement potentially in the pipeline after the central bank signalled a more relaxed stance on monetary policy citing that inflation has already peaked.

"With less than three weeks to go until the Budget, many buyers and sellers have put moving plans on pause until the picture becomes clearer. In the meantime, the market rumbles on. Sellers are pricing more competitively, recognising buyers face higher upfront costs since April’s stamp duty changes and are wary of future tax reforms."

---