House prices rise for first time in six months, says Halifax

House prices rose in October for the first time in six months, according to the Halifax, but it expects values to fall over the next year.

The UK's largest mortgage lender said prices rose 1.1% last month, taking the average property value to £281,974.

But the Halifax said the rise was due to a lack of homes for sale, and demand from buyers remained weak.

It expects prices to fall until 2025, with buyers facing higher interest rates and cost of living pressures.

House prices in October were down 3.2% from the same point last year, according the Halifax's data.

Kim Kinnaird, director of Halifax Mortgages, said: "Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale.

"This is likely to have strengthened prices in the short-term, rather than prices being driven by buyer demand, which remains weak overall."

Up until recently, the Bank of England had been increasing interest rates steadily in an attempt to tame soaring inflation. The rise has led to higher mortgage rates for homeowners.

While the Bank has now left rates unchanged at 5.25% at its past two meetings, it is not expected to cut them anytime soon.

Given that outlook, the Halifax said it expected "house prices to fall further overall - with a return to growth from 2025".