House prices in England and Wales have increased month-on-month for the first time in half a year, e.surv has found.

The firm’s house price index revealed that in October, the average price of a property moved to £354,800, an increase of 0.2% from September.

However, this increase was subdued by prices dropping by 3.4% annually, with property values continuing to be about £24,000 below the previous peak reached in late 2022.

The firm noted that following a pick-up in demand in recent months on the back of easing cost of living pressures and more attractive mortgage pricing, property sales have recovered.

It added that this is a "positive development" given the uncertainties around the recent Budget.

Despite this, e.surv said that the Budget announcements for housing were "more negative than positive". It suggested the lowering of the stamp duty land tax threshold in the Budget is "likely to have a material impact on first-time buyers", who could face a stamp duty increase of up to £6,250.

Director at e.surv, Richard Sexton, said: "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.

"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 focused 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."

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