In an unexpected turn, British house prices saw a 0.9% rise in October compared to September. However, this increase is attributed to a shortage of available homes for sale, rather than
indicating a market reversal that has been impacted by rising borrowing costs, according to a statement from a mortgage lender.
On a year-on-year basis, October prices registered a decline of 3.3%, which is a milder drop compared to the 5.3% decrease in September, as reported by Nationwide.
Economists surveyed by Reuters had anticipated a 0.4% monthly decline and a 4.8% year-on-year decrease in house prices.
Nationwide's Chief Economist, Robert Gardner, noted that the October upturn in house prices is primarily a result of limited supply in the property market.
He further mentioned that there is little evidence of forced home sales that could exert downward pressure on prices. This is mainly due to the low unemployment rate, which is assisting households in meeting their increased mortgage expenses.
The Bank of England had raised interest rates 14 times between December 2021 and August 2023, resulting in mortgage rates reaching their highest levels since 2008. The Bank of England is anticipated to keep the Bank Rate unchanged for a second consecutive meeting on Thursday.