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House price growth beat expectations last month
UK house prices rose more than expected in October, signaling resilience despite uncertainty over property tax reforms ahead of the November 26 budget. Nationwide reported a 0.3% monthly increase, following September’s 0.5% rise, and a 2.4% year-on-year gain. Nationwide chief economist Robert Gardner said: "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 pre-Covid levels." Mortgage approvals also hit their highest since December, suggesting ongoing demand. Pantheon economist Elliott Jordan-Doak noted: "Some homebuyers are taking a wait-and-see approach to the budget . . . But the activity indicators holding up better than survey-based signals suggest that demand remains robust." Capital Economics’ Ashley Webb added: "Homebuyers may not be as fazed by the threat of tax rises . . . as it first appeared." Analysts expect gradual price growth and modestly improved affordability if income growth continues to outpace house prices.
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