House prices stall in October

House prices stall in October




Average house prices remained unchanged month-on-month in October, according to the latest Nationwide House Price Index.

It was also found that annual house-price growth slowed to 4.6% in October, from 5.3% in September.

Robert Gardner, Nationwide's chief economist, said: “While the economic outlook is uncertain, solid labour market conditions and historically low borrowing costs should provide support to buyer confidence.

“Moreover, the relatively low number of homes on the market and modest rates of housing construction are likely to keep the demand/supply balance fairly tight, even if economic conditions weaken in the quarters ahead, as most forecasters expect.”

Mario Berti, head of Octopus Property, added: “While the annual rate of house-price growth is down, the end of days scenario some predicted for the property market hasn’t materialised.

"But at the same time the UK is facing a turbulent year ahead.

“The low interest rate environment, strong labour market and ongoing lack of supply are continuing to support prices.

"But the return of inflation will lead to a fall in real incomes and that may continue to dampen consumer demand and hit property volumes.

“The triggering of Article 50 is another major hurdle for the UK property market.

“That makes things official and will test consumer and business sentiment all over again.

"Factor in the US election and elections on the continent and you have all the ingredients for uncertainty.

“What we negotiate with Europe will arguably shape the medium- and long-term performance of the UK property market."

The average house price for October was £205,904.

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