House prices across the UK rose by 0.6% in October—the strongest monthly increase since January—adding £1,647 to the value of the average home.

The typical property now costs £299,862, setting a new record. Annual growth also picked up pace, rising to 1.9% from 1.3% the previous month.

A banking group’s spokesperson Amanda Bryden claims its figures shows: “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.

“Even so, while there has been some volatility, the market has proven resilient over recent months, as many buyers opt for smaller deposits and longer terms to help make the numbers work. 

“With house prices rising more slowly than incomes for almost three years now, we expect the trend of gradually improving affordability to continue.”