The report revealed that the average house price for October reached £186,044 – a 1.1 per cent increase from the £184,723 seen in September.
Annually, house prices increased by 9.7 per cent. However, despite the market indicator revealing strong property price growth for the Autumn months, the study admitted that market activity was beginning to slow.
Fionnuala Earley, chief economist at Nationwide, said: “While some may be tempted to interpret October’s numbers as a sign that property prices are immune to deteriorating affordability and tightening credit conditions, such a conclusion would be misguided. Most leading indicators of the housing market are continuing to weaken. Surveyors are reporting the weakest levels of new buyer enquiries in many years and mortgage approvals are falling from recent highs, amid weaker demand and tighter lending criteria for riskier borrowers.”
Simon Rubinsohn, chief economist at the Royal Institution of Chartered Surveyors, said that one of the key reasons behind the market’s resilience was the continuing lack of supply of affordable or appropriate housing in the UK.
He explained: “The 1.1 per cent gain in property prices in October this year represents the highest month-on-month increase this year and provides a stark contrast to the fears of outright price declines. One reason why the housing market is still proving resilient is the evident lack of supply.”
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