In October, the UK experienced a slowdown in house price inflation for the first time in six months, according to the Nationwide Building Society's latest report. The annual increase in house prices decelerated to 2.4% compared to September's 3.2%. This outcome was below economists' predictions, which had anticipated a decline to 2.8%.
On a month-to-month comparison, house prices edged up by merely 0.1%, following a 0.6% increase in the preceding month.
Robert Gardner, Nationwide's Chief Economist, commented, "Despite a noticeable rise in interest rates, the housing market has shown remarkable resilience recently. Mortgage approvals are nearing the levels seen before the pandemic."
Since the beginning of 2024, housing activity and prices have consistently climbed, thanks to a robust labor market characterized by low unemployment rates and significant wage growth that offsets inflationary pressures.
Gardner further noted, "Assuming the economy continues its steady recovery as predicted, we expect housing market activity to gradually intensify. This will be driven by easing affordability challenges, as a moderate decrease in interest rates combines with earnings surpassing house price growth."
