House prices unexpectedly increased last month as sellers take a “cautious attitude” rather than offloading at lower prices.
Property values rose by 1.1pc in October compared to September, breaking a cycle of six consecutive monthly falls, according to the Halifax house price index.
The increase comes after the Bank of England opted to hold interest rates steady at 5.25pc in a boost to mortgage borrowers.
It means a typical home is worth £281,974, up around £3,000 on the previous month.
On an annual basis, prices were down 3.2pc compared to October last year.
Kim Kinnaird, director at Halifax Mortgages, said: “Prospective sellers appear to be taking a cautious attitude, leading to a low supply of homes for sale.”
Last week, separate data from Nationwide indicated that house prices made a surprise lurch upwards last month.
It said prices in October were up 0.9pc compared with September as sellers decided to bide their time rather than sell at lower prices, according to a closely-watched survey.
It meant the annual fall in house prices was cut to 3.3pc, although this remains the ninth month in a row that the figure has fallen as mortgage approvals plummet.
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