UK Nationwide House Price Growth Softest Since 2024
(RTTNews) - UK house prices grew at the slowest pace since the start of 2024 as rising interest rate expectations weighed on the property market in October, data published by Nationwide Building Society showed Friday.
House prices grew only 0.5 percent in October from the previous year. This was weaker than the 0.8 percent rise in September and economists' forecast of 0.6 percent. Moreover, this was the slowest increase since January 2024.
On a monthly basis, house prices stagnated after falling 0.3 percent in September. Prices were expected to fall 0.2 percent.
"Market activity and house price growth have slowed in recent months, in part reflecting the uncertain economic backdrop," Nationwide's Chief Economist Robert Gardner said.
Geopolitical tensions remain high, with the conflict in the Middle East exerting upward pressure on energy prices, fanning inflation concerns, he noted.
"This in turn has led to mounting financial market expectations of Bank Rate increases, which have maintained upward pressure on the market interest rates which underpin mortgage pricing," Gardner added.
Gardner expects housing market to regain momentum once the energy shock fades. He observed that broader economy remained surprisingly resilient with annual economic growth accelerating in recent quarters.
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