The UK property sector displayed significant volatility in October, with house prices surging to a record high just as a major industry player saw its stock tumble. Prices on the ground climbed 0.6%, reversing a 0.3% dip in September and marking the fastest rise since January. This pushed the average home to $pounds$299,862.
This whiplash from a fall to a surge highlights a market pulled in opposing directions. Halifax reported that buyer demand remains “resilient,” with mortgage approvals hitting a yearly high. This suggests a strong appetite for property despite major headwinds.
The main headwind is affordability. Record prices, coupled with mortgage rates around 4% and a general cost of living squeeze, are making it a “stretch” for many buyers. They are compensating by taking on longer-term loans and putting down smaller deposits.
In a sign of broader sector uncertainty, shares in the estate agent platform Rightmove fell sharply on Friday, at one point dropping as much as 25%. The company warned that its profit growth would slow significantly in 2026, down from its 2024 and 2025 levels.
This contrast between Rightmove’s slowing profit outlook and Halifax’s “resilient” market data paints a complex picture. While Rightmove is investing in AI for long-term growth, the short-term outlook for the property sector appears to be one of volatility and high-stakes financial pressure for buyers.