The Nationwide House Price Index in the UK increased by 2.4% year-over-year in October 2024, slowing from September's 3.2% rise and falling short of the projected 2.8% growth.
UK house price growth slows in October
Nevertheless, this marked the eighth consecutive month of rising house prices. Nationwide's Chief Economist, Robert Gardner, observed that the housing market has remained resilient, with mortgage approvals now approaching pre-pandemic levels despite higher interest rates. He highlighted that strong labor market conditions, including low unemployment and rising wages, have supported consistent market activity and price growth throughout the year.
Activity may strengthen
Gardner suggested that if the economy continues to recover, housing market activity could gradually strengthen as improved affordability is driven by lower interest rates and faster income growth. On a monthly basis, house prices edged up 0.1%, slowing from a revised 0.6% rise in September and falling below the anticipated 0.3% increase.
