The average house price saw a slight rise in October, according to the latest Nationwide House Price Index.
Nationwide reported a 0.3% increase month-on-month, with the average house price now standing at £272,226. The rate of annual house price growth also rose from 2.2% in September to 2.4% in October.
Commenting on the figures, Robert Gardner, Nationwide’s chief economist, said: “The housing market has remained broadly stable in recent months, with house prices rising at a modest pace and the number of mortgages approved for house purchase maintained at similar levels to those prevailing before the pandemic struck.” “Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs.”
“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs.”
“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 the 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.”
Daniel Austin, CEO and co-founder at ASK Partners, said: “Today’s modest rise in property prices offers a welcome hint of optimism, but the market remains in ‘wait-and-see’ mode ahead of the Autumn Statement. The Bank of England’s decision to hold rates brings some reassurance, yet persistently high borrowing costs and ongoing policy uncertainty continue to weigh on both buyers and developers. Fixed mortgage rates remain elevated, delaying meaningful relief for homeowners and first-time buyers.”
“Developers, meanwhile, are grappling with rising build costs, tighter debt markets, and planning delays, factors that render many projects financially unviable despite recent government moves to cut affordable housing requirements and streamline planning. These are positive steps, but without broader demand-side measures, such as stamp duty reform, first-time buyer support, and incentives for off-plan purchases, momentum is likely to remain subdued.”
“Investors are focusing on long-term fundamentals. Resilient segments such as build-to-rent, co-living, and storage continue to attract capital thanks to a persistent supply-demand imbalance, even as overall market activity cools. Against a backdrop of global volatility and shifting domestic policy, UK real estate debt remains a compelling proposition, offering capital preservation, steady income, and protection from equity market swings.”
Jason Tebb, president of OnTheMarket, commented: “While there is much uncertainty, not least surrounding next month’s Budget, the housing market continues to demonstrate resilience. Activity is steady as focused buyers and sellers proceed with their transactions. While annual house price growth edges higher, values are being held in check to an extent as buyers find themselves in a strong position, which they are using to negotiate on price.”
“While mortgage rates are higher than they were pre-pandemic, affordability challenges continue to ease. While the Bank of England held the base rate at last month’s meeting, this has created a feeling of stability with the suggestion of more reductions to come once the rate setters are certain that inflation has peaked. In the meantime, a number of lenders are reducing their mortgage rates on the back of falling Swap rates, along with easing criteria, which should further assist with affordability.”
Source: Showhouse
