Annual rate of growth also rises in month
UK house prices increased by 0.3% in October after taking account of seasonal effects, according to Nationwide’s latest House Price Index.
The bank’s figures showed the rate of growth also moved up from 2.2% in September to 2.4% this month.
The average price of a home in the UK now stands at £272,226.
Robert Gardner, Nationwide’s chief economist, said the housing market had been “broadly stable” in recent months, despite a backdrop of “subdued consumer confidence and signs of weakening in the labour market”.
“Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect,” he said.
“Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.”
Gardner said this should support buyer demand.
Ryan Etchells, chief commercial officer at Together, welcomed the rise in prices but said there was a “question mark over whether it can be sustained” given the Bank of England’s August rate cut “failed to reignite buyer activity” and inflation remaining high.
“Uncertainty around the upcoming Budget - particularly the potential for a national property tax - is also causing buyers to hold off,” he said.
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