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House prices rose by 0.9 percent on average month-on-month in October, according to Nationwide Building Society, although they were 3.3 percent lower compared to the same month last year.<\/p>\n
Across the UK, the average house price in October was \u00a3259,423.<\/p>\n
Robert Gardner, Nationwide’s chief economist, said that despite the month-on-month rise in prices, housing market activity “has remained extremely weak, with just 43,300 mortgages approved for house purchase in September, around 30 percent below the monthly average prevailing in 2019”.<\/p>\n
Other analysts have described the “unexpected uplift” as a “glimmer of hope” for homeowners that the worst of the downturn may be over.<\/p>\n
Alice Haine, personal finance analyst at Bestinvest, commented: \u201cBritain\u2019s house prices rose 0.9 percent on the month in October, offering a glimmer of hope to homeowners that the worst of the downturn may be over. The unexpected uplift led to an improvement in the annual rate of house price growth, which dropped by -3.3 percent from a decline of -5.3 percent in September.\u201d<\/p>\n
READ MORE: <\/strong> The UK’s ‘most desirable’ town where house prices triple the national average[LATEST] <\/strong><\/p>\n But while this may deliver some relief, Ms Haine noted: \u201cThe uptick reflects the low stock of properties up for sale as high borrowing costs and uncertain conditions caused many sellers to delay putting their home up for sale.\u201d<\/p>\n In the last month, the Bank of England’s Money and Credit Report indicated a significant decrease in mortgage approvals, dropping from 45,400 in August to 43,300, marking their lowest level since January<\/p>\n Ms Haine said: “Mortgage approvals dropped almost five percent in September, according to recent Bank of England data, while lending also plunged as buyers either shunned the market or favoured smaller, cheaper homes to help meet mortgage affordability criteria.<\/p>\n “Whether mortgage lending will weaken further in the months ahead depends on what the BoE does next with interest rates.”<\/p>\n Don’t miss… <\/strong> The Monetary Policy Committee, which is responsible for determining the Base Rate, is widely anticipated to maintain it at 5.25 percent during its upcoming meeting on Thursday, given the easing inflation and increasing concerns about a broader economic downturn.<\/p>\n While another pause may deliver good news for first-time buyers, interest rates are now forecast to stay higher for longer to constrain demand, which Ms Haine said could add further downward pressure on property prices.<\/p>\n Meanwhile, Bob Singh, founder of Uxbridge-based Chess Mortgages, described the property market as “malaise”, a term indicating a general sense of discomfort characterised by persistent stagnation. <\/p>\n He said: “Malaise is the word I would use to describe the property market right now, but this data seems to suggest it is gathering momentum. October’s uptick in prices has certainly come out of the blue based on what we’re seeing.<\/p>\n
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