British house prices rose in October, lender Nationwide said yesterday outpacing forecasts by economists and adding to signs of demand in the housing market in the run-up to finance minister Rachel Reeves’ budget which is likely to include tax increases.
Nationwide said its house price index increased by a monthly 0.3 per cent after rising by 0.5pc in September.
House prices were 2.4pc higher than a year earlier, speeding up from an annual increase of 2.2pc in September, it said.
Economists had on average forecast no change in prices in monthly terms and a 2.3pc annual increase.
“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,” Nationwide’s chief economist Robert Gardner said.
Data published by the Bank of England on Wednesday showed the number of mortgages approved by lenders in September came in higher than expected.
However, some other measures of the housing market have suggested a slowing in price growth in recent months.
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