Annual UK house price growth rises in October

Annual UK house price growth edged higher in October, a tracker from mortgage lender Nationwide showed on Friday.

Property values increased by 0.3% month-on-month in October, following a 0.5% rise in September, taking the average UK house price to GBP272,226, Nationwide said.

The typical UK house price increased 2.4% annually in October, compared with a 2.2% rise in September.

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."

He said housing affordability is likely to "improve modestly" if income growth continues to outpace house price growth as expected.

Gardner added: "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."