UK homeowners received an unexpected financial boost in October as property values continued their upward trajectory, though at a significantly slower pace than previous months.
Modest Growth Amid Economic Uncertainty
The latest data from Nationwide Building Society reveals that the average UK house price increased by 0.3% during October, adding £231 to property values. This brings the typical home value to £272,226, up from £271,995 in September.
While the monthly growth represents a slowdown from previous periods, the annual picture shows slight improvement. Year-on-year house price growth edged up to 2.4% in October compared with 2.2% in September, indicating persistent underlying demand in the housing market.
Market Resilience Against Challenging Backdrop
Robert Gardner, Nationwide's chief economist, highlighted the market's surprising strength given current economic conditions. "Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience," Gardner stated.
He particularly noted the market's stability despite mortgage rates being more than double their pre-Covid levels and house prices remaining close to all-time highs.
The property listing website Rightmove echoed this sentiment, reporting continued "resilience" in new property listings, though noting the absence of the usual autumn price surge.
Expert Views and Regional Variations
Industry experts provided mixed assessments of the market's health. Anthony Codling, housebuilding analyst at RBC Capital Markets, suggested that "homebuyers sit on the sidelines waiting to see what next month's budget will bring."
Despite this caution, Codling maintained that "if the housing market is one thing, it is resilient," adding that anticipated further rate cuts should help support prices.
At the local level, the picture appears more varied. Amy Reynolds, head of sales at Antony Roberts estate agents in wealthy west London, described the market as "sluggish, particularly at the higher end," indicating potential regional disparities in market performance.
Looking ahead, Nationwide anticipates that housing affordability should improve modestly in coming months, provided income growth continues to outpace house price increases and borrowing costs ease further.
