House prices grow at slowest pace since 2024 as buyers adjust to higher energy bills and mortgage rates
House prices rose at their slowest pace since early 2024 this month, as higher energy prices and low confidence in the economy put buyers off moving home.
UK house prices rose by 0.5 per cent in October to an average of £273,566, marking the slowest growth rate since the start of 2024, according to Nationwide. This represents a slowdown from the 0.8 per cent growth recorded last month and 1.6 per cent in August. This Is Money reports that higher energy prices and low economic confidence have deterred buyers from moving.
City AM reports that property experts believe the Budget failed to boost the housing market, which has been impacted by rising building costs, burdensome red tape, and surging mortgage rates caused by the Iran war. Nationwide economists noted that expectations of Bank of England interest rate hikes are increasing mortgage costs and causing prospective buyers to delay decisions. Nationwide’s chief economist, Robert Gardner, expects further softness in the market as consumer sentiment worsens.
Data from HMRC shows that the number of housing transactions in the UK fell by four per cent to 94,000 in September.
Brief written by urgent.news from This Is Money, City AM — 2 reports on this story. Machine-written — may contain errors; check the original before relying on it.
