UK house prices continued their upward trajectory in October, aided by lower borrowing costs.

The Royal Institution of Chartered Surveyors noted a rise in its house price net balance to 16, up from 11 in September, with sales volumes also improving.

Despite stable buyer demand, expectations for further price increases grew, reflecting optimism following the Bank of England’s recent rate cut aimed at easing borrowing costs amid falling inflation.

“The improvement in buyer demand [has translated] into growth in the number of sales being agreed,” said Tarrant Parsons, head of market analysis at RICS.

“Just as importantly, forward-looking sentiment points to this bright trend remaining in place in the coming months.

“That said, the rise in bond yields following the Budget, alongside a general increase in financial market implied interest rate expectations over the past couple of weeks, will likely present something of a headwind.”