Despite the increase, UK house prices are still below the peak reached in August last year, with an average house price of £259,423. Compared to the same period last year, the average house price has still declined by 3.3%. These figures underscore the complexity and volatility of the UK property market.

The report suggests that the October increase likely reflects the limited supply of properties in the market. The Royal Institution of Chartered Surveyors (RICS) also believes that property scarcity and robust wage growth have supported house prices.

The current average housing inventory has dropped to near historic lows, exacerbating the imbalance between supply and demand in the market, making price increases possible. Additionally, the report notes stable labor market conditions and historically low mortgage arrears rates, which have provided some support for house prices.

However, despite the increase, the report also indicates that economic activity and house prices in the coming quarters may continue to remain subdued. Consumer confidence remains weak, which may pose challenges to the stability of house prices.

Furthermore, the relatively low levels of inquiries from new buyers about properties and the rise in mortgage rates over the past 12 months are also among the factors contributing to the slowdown in house prices. This suggests that buyers are exercising caution in the current market environment, waiting for the right opportunity.

On the other hand, rents continue to rise rapidly, which could drive cash buyers and first-time homebuyers to become the main force in the property market over the next two years.

For the government and relevant stakeholders, this report raises several issues that need attention. Firstly, the shortage of property supply may lead to an imbalance in supply and demand in the market, and measures should be taken to promote housing construction and development to meet potential demand.

Secondly, weak consumer confidence may affect the willingness to purchase property and market activity, and the government needs to boost market confidence through policies and measures. Additionally, regulatory authorities need to closely monitor changes in mortgage rates and their impact on homebuyers and the market to ensure the sustainability and stability of the market.