New sellers' asking prices for U.K. houses increased at the fastest pace in eight months in October, while the gulf in prices between the affluent southern regions and the north widened to an all-time high in the survey history, latest figures from Rightmove showed Monday.
Nationally, prices increased 2.8 percent to 239,672 pounds in October compared to a 0.7 percent increase in September. Annually, prices rose 1.2 percent.
The survey revealed that asking prices in the south climbed 4.7 percent month-on-month to a record 336,743 pounds, more than double those in the north. Asking prices in the north fell back 0.7 percent to 164,347 pounds, levels first achieved over six years ago in May 2005.
Mortgage approvals rose to the highest level since November 2009, indicating a slight easing in the mortgage famine, with low-rate deals likely to help home movers in the deposit-rich south while public sector job losses hit prices in the north, Rightmove said.
According to the Bank of England, mortgage approvals totaled 52,410 in August, the highest level since the end of 2009.
The overall increase in asking prices masks a two-tier UK property market, Rightmove Director Miles Shipside said. Wider access to mortgages and rising asking prices are early signs of increasing demand, giving home owners some grounds for hope of a market recovery, Shipside added.
House prices in London rose to a record high of 450,210 pounds, which is 2.6 higher than its previous peak in June.
Of the seven UK regions with the highest unemployment levels six are in the north, so employment concerns, especially in the public sector, will be exerting downwards pressure on prices and activity in many northern area, Shipside said.
According to a survey by the Royal Institution of Chartered Surveyors released last week, house prices in the U.K. remained unchanged in September, while housing supply fell back due to weak consumer confidence.
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May 01, 2026 15:54 ET Central banks dominated the economics news flow this week with almost all major ones announcing their latest policy decisions and many boosted expectations for a rate hike in June. In other news, several countries released the preliminary data for first quarter economic growth. In the U.S., comments by Fed Chair Jerome Powell were also in focus as his term ends this month.