House prices edged higher this month, according to the latest figures from Nationwide Building Society.

The typical home went up in value by 0.3 per cent or just £231, rising from £271,995 to £272,226 between September and October.

Compared to this time last year, house prices are 2.4 per cent higher, according to the mutual.

It follows on from Wednesday's Bank of England data that showed the number of mortgages approved in September rose by 1.5 per cent.

Property market experts now say house prices and mortgage activity are proving resilient despite rumours of property tax changes in the Budget on 26 November. 

The Chancellor is reportedly mulling over a new 'mansion tax' which would see owners of £2million-plus homes paying 1 per cent on anything over that amount each year. 

There is also rumour she might replace stamp duty with a new annual property tax on homes worth more than £500,000 or a capital gains tax which kicks in when homes worth £1.5million or more are sold, as well as an additional tax raid on landlords. 

'If the housing market is one thing, it is resilient,' said Anthony Codling, head of European housing for investment bank, RBC Capital Markets. 

'House prices are at close to all-time highs but mortgage rates more than double where they were before Covid, and the prospect of further rate cuts will underpin house prices.'

Many would-be movers are waiting to see what happens next, though, according to Babek Ismayil, chief executive of home buying platform OneDome.

He says some people are waiting to see if property taxes change, while others are waiting for further interest rate cuts.

Goldman Sachs has recently predicted that the Bank of England will cut interest rates when it meets next week.  

'What we’re really seeing is a market in pause mode,' says Ismayil. 'There’s resilience, certainly, but not momentum. 

'The stability in house prices and transaction volumes shows that demand hasn’t collapsed, yet neither side - buyers or sellers - is feeling particularly bold. 

'The optimism that might normally accompany a period of wage growth and falling inflation is being tempered by lingering economic anxiety.'

Could house prices push on after the Budget?

Once the budget is behind us, there are some in the property industry that think house prices could start to kick on. 

Nationwide’s data shows that as average wages have risen steadily over the past year, meaning by that metric at least homes have become more affordable. 

For the first time in over a decade, the price of the average home has fallen back to 5.6 times the average salary.

'This takes the ratio between prices and earnings back to the average level of the past 25 years,' said buying agent Jonathan Hopper, chief executive of Garrington Property Finders.

'People are earning more, and as wages outpace house prices and borrowing gets cheaper, more people can afford to buy.'

Iain McKenzie, chief executive of The Guild of Property Professionals added: 'Looking forward, we expect growth to remain modest but consistent through the end of the year. Much will hinge on the Autumn Budget and any policy measures affecting housing or taxation. 

'While short-term caution is understandable, the medium-term picture looks increasingly positive as stability returns, and mortgage flexibility improves.'

Robert Gardner, chief economist at Nationwide is also optimistic for house prices next year.

He added: 'Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. 

'Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.

'This should support buyer demand, especially since household balance sheets are strong – indeed, in aggregate the ratio of household debt to disposable income is at its lowest for two decades.'