The average house price now totals £293,999, surpassing the previous peak of £293,507 set in June 2022.

While the annual growth rate was slightly lower than the 4.6% in September, house prices went up by 0.2% on a monthly basis.

The data shows that house prices increased by 1.2% from the previous quarter.

Halifax head of mortgages Amanda Bryden says: “That house prices have reached these heights again in the current economic climate may come as a surprise to many, but perhaps more noteworthy is that they didn’t fall very far in the first place.”

“Despite the headwind of higher interest rates, house prices have mostly levelled off over the past two and a half years, recording a +0.2% increase overall. That’s a significant slowdown compared to the +21% rise we saw in the equivalent period from January 2020 to the summer of 2022.”

“Despite the affordability challenge, market activity has been improving. The number of new mortgages agreed recently reached its highest level in two years. This aligns with average mortgage rates dropping steadily since spring – now over 160 basis points lower than in summer 2023 – coupled with continued positive income growth.”

“Looking ahead, borrowing constraints remain a challenge for many buyers. Following the Budget, markets expect the Bank of England to cut rates more slowly than previously anticipated, which could keep mortgage costs higher for longer. New policies like higher stamp duty for second home buyers and a return to previous thresholds for first-time buyers might also affect demand.”

“While we expect house prices to keep growing, it will likely be at a modest pace for the rest of this year and into next.”

The Guild of Property Professionals chief executive officer Iain McKenzie states: “Our members are reporting healthy levels of housing supply, meaning that although prices are reaching a new peak, they are still being kept in check and not forcing people to shelve dreams of homeownership.”

“Some lenders are already prioritising new business with competitive rates. We may see offers retreat from the market in the coming weeks as lenders adjust their rates upwards following the Autumn Budget.”

MT Finance director Tomer Aboody comments: “A confident finish to 2024 is in evidence, with buyers taking advantage of lower rates and lower inflation.”

“As the Budget settles into the market, we expect interest rates to stay put for longer rather than decrease, which potentially will affect the positive upward trend going forward.

“Buyers currently have more choice of property, which is ensuring prices aren’t soaring to super high levels.”

Together head of intermediary sales Maeve Ward adds: “Despite the blows from last week’s tax-heavy Budget, house prices have risen further, by 0.2% likely in reaction to today’s anticipated further interest rate cut.”

“Activity should continue to pick up due to the £500m additional funding announced by the Chancellor for the Affordable Homes Schemes and £5bn commitment to deliver 1.5 million homes across the term of this parliament and £50m to turbocharge planning reform – all of which should offer options for hopeful first-time buyers and house builders.”

SPF Private Clients chief executive Mark Harris says: “The housing market has been significantly buoyed by lower mortgage rates, leading to more interest from prospective buyers and increased activity.”

“Since UK gilt yields rose in the immediate aftermath of the Budget, this has had an effect on Swap rates which underpin the pricing of mortgages, providing an indicator as to where interest rates will be. With the exception of a few lenders who purchased Swaps before the Budget, mortgage pricing has edged upwards.”

“The Bank of England is still expected to cut interest rates later today which would help boost confidence and affordability, particularly as this trend is expected to continue, albeit at a slower pace than previously thought, into the new year.”