UK house prices edged up to a record high in October, data published by Halifax showed Thursday.

The average house price rose by 0.2% monthly to GBP293,999 in October. It was up 3.9% from a year ago when it stood at GBP283,053, however the growth was slowed from 4.6% in September. “Despite the affordability challenge, market activity has been improving.

The number of new mortgages agreed recently reached its highest level in two years,” said Amanda Bryden, head of Mortgages at Halifax.

She added: “Looking ahead, borrowing constraints remain a challenge for many buyers. Following the budget, markets expect the Bank of England to cut rates more slowly than previously anticipated, which could keep mortgage costs higher for longer.”