UK house prices edge up in October, Nationwide says

Published On : 11/01/2024

LONDON (Reuters) – British house prices rose by a marginal 0.1% in October, slowing sharply from a 0.6% monthly increase in September but the market remained resilient and was likely to gain momentum as borrowing costs fall, mortgage lender Nationwide said on Friday.

Economists polled by Reuters had forecast prices would rise by 0.3% on a monthly basis.

Compared with October last year prices were 2.4% higher, a weaker annual increase than September’s 3.2% rise and below the median forecast for a 2.8% gain in the Reuters poll.

Robert Gardner, Nationwide’s chief economist, said the housing market remained resilient and activity was likely to strengthen as interest rates fall.

The Bank of England is expected to cut borrowing costs on Thursday next week followed by further reductions in 2025.

The expiry at the end of March next year of a temporary tax incentive for home-buyers – which was confirmed in finance minister Rachel Reeves’ first budget this week – was also likely to increase demand in the first three months of 2025.

“However, the swings in activity are likely to be somewhat less pronounced, in this instance, given that the stamp duty reduction has been in place for some time and its planned expiry was well known,” Gardner said.

An increase in the higher rate of stamp duty for second homes could dampen demand for buy-to-let properties, he said.

(Writing by William Schomberg, Editing by Paul Sandle)

Wanda Rich

Wanda Rich has been the Editor-in-Chief of Global Banking & Finance Review since 2011, playing a pivotal role in shaping the publication’s content and direction. Under her leadership, the magazine has expanded its global reach and established itself as a trusted source of information and analysis across various financial sectors. She is known for conducting exclusive interviews with industry leaders and oversees the Global Banking & Finance Awards, which recognize innovation and leadership in finance. In addition to Global Banking & Finance Review, Wanda also serves as editor for numerous other platforms, including Asset Digest, Biz Dispatch, Blockchain Tribune, Business Express, Brands Journal, Companies Digest, Economy Standard, Entrepreneur Tribune, Finance Digest, Fintech Herald, Global Islamic Finance Magazine, International Releases, Online World News, Luxury Adviser, Palmbay Herald, Startup Observer, Technology Dispatch, Trading Herald, and Wealth Tribune.