Nationwide’s latest figures show UK house prices edged up 0.3% in October, leaving the average property valued at £272,226.
Prices are now 2.4% higher than a year ago, marking a modest improvement that hints at resilience in the face of persistent economic uncertainty.
Robert Gardner, Nationwide’s Chief Economist, says: “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.
“Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. 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.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says: “Some buyers are hedging their bets to try to agree terms and before exchanging in early December if possible without fear of additional competition and possibly higher prices once the Chancellor’s intentions are known.”
Nathan Emerson, chief executive at Propertymark, adds: “It is positive for those on the housing ladder to see them accumulate more equity. However, the flip side is that it remains ever more demanding for first-time buyers to attain a foothold on their housing journey.
“Three base rate dips have helped increase consumer affordability; however, we still have a rate of inflation that is near double what the Bank of England is hoping for.”
But in London there are few signs of market optimism.
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says: “While Nationwide reports little change in average house price data, on the ground the property market remains sluggish, particularly at the higher end, as buyers and sellers sit tight ahead of the Autumn Budget.
“London property is directly tied to politics and the wider economy, and the drawn-out uncertainty over potential tax changes is freezing activity and costing the Treasury in lost stamp duty.
“Any talk of a mansion tax or further property levies risks inflicting real damage. Bringing in another tax layer, and the red tape that comes with valuing such properties, would create huge administrative costs, push some homeowners into negative equity and risk a self-inflicted crisis in the high-end market.”
This article is taken from Landlord Today