UK house prices unexpectedly climbed in October due to a shortage of properties amid the robust labor market conditions, data from the mortgage lender Nationwide Building Society revealed Wednesday.<\/p>\n
House prices posted a monthly growth of 0.9 percent in October, following a 0.1 percent rise in September. This was the highest since August 2022, when the rate of increase was the same. Prices were expected to drop 0.4 percent. <\/p>\n
On a yearly basis, house prices decreased 3.3 percent. The annual fall was less severe than September’s 5.3 percent decline. Economists had forecast a 4.8 percent drop. <\/p>\n
Still, housing market activity remained extremely weak, Nationwide Chief Economist Robert Gardner said. <\/p>\n
Housing affordability remains stretched. Market interest rates moderated somewhat but they are still well above the lows prevailing in 2021, the economist pointed out.<\/p>\n
Gardner said activity and house prices are set to remain subdued in the coming quarters. Despite signs that cost-of-living pressures are easing, consumer sentiment remains weak and surveyors continue to report subdued levels of new buyer inquiries. <\/p>\n
Data from the Bank of England this week showed that net mortgage approvals for house purchases fell to 43,300 in September from 45,400 in August. <\/p>\n
The BoE had paused its policy tightening in September after raising the interest rate at each and every rate-setting meeting since December 2021. <\/p>\n
At 5.25 percent, the interest rate was the highest since early 2008. The bank is likely to keep the rate unchanged again at 5.25 percent on November 2. <\/p>\n