British house prices edged higher in October, lender Nationwide reported on Friday, surpassing economists’ expectations and signalling continued resilience in the property market ahead of Finance Minister Rachel Reeves’ upcoming budget, which is expected to feature tax rises.
Nationwide’s data showed its house price index climbed by 0.3% on the month, following a 0.5% increase in September. On an annual basis, prices were up 2.4%, accelerating from 2.2% in the previous month.
Economists surveyed by Reuters had anticipated no monthly change and a 2.3% annual rise.
“Despite subdued consumer confidence and emerging signs of weakness in the labour market, the housing sector continues to demonstrate resilience — particularly as mortgage rates remain more than twice their pre-pandemic levels and property prices sit near record highs,” said Robert Gardner, Nationwide’s Chief Economist.
Supporting this outlook, Bank of England figures released on Wednesday revealed that mortgage approvals in September exceeded expectations.
Nonetheless, other housing indicators have pointed to a moderation in price growth in recent months, as potential buyers adopt a more cautious stance ahead of Reeves’ November 26 budget announcement.
