Nationwide has released its latest House Price Index, offering a fresh snapshot of the UK housing market after a period of subdued activity. The October figures arrive against a backdrop of rising mortgage costs, weaker buyer confidence, and continued uncertainty over interest rates.
Slowdown in Annual Growth
Annual house price growth slowed sharply in September, falling to 0.8% from 1.6% in August. Prices also declined by 0.2% month on month. The latest report reveals whether that slowdown continued into October or whether the market showed signs of renewed momentum.
Mortgage Approvals Add to Market Uncertainty
The latest Nationwide figures follow a third consecutive monthly decline in mortgage approvals for house purchases. Bank of England data showed approvals fell to 53,400 in September, down from 54,800 in August. Net mortgage borrowing also declined, slipping to £3.9bn from £4.2bn. Meanwhile, the effective interest rate on newly drawn mortgages rose to 4.63%.
The figures underline the affordability pressures facing buyers as the housing market approaches the end of the year.
What Next for House Prices?
Nationwide chief economist Robert Gardner has provided his latest assessment of the market alongside today's figures, which will be shared shortly. For estate agents, the latest report provides another indication of whether buyers are regaining confidence or continuing to hold back. The direction of mortgage rates, inflation, and household finances will remain important influences on activity in the months ahead.
