UK house prices rose by 0.9% month-on-month in October, but are down by 3.3% year-on-year, Nationwide’s latest House Price Index (HPI) has revealed.
The average UK house price in October — not seasonally adjusted — was £259,423, up from £257,808 in September.
Despite this, Robert Gardner, chief economist at Nationwide, highlighted that housing market activity remained “extremely weak”, with only 43,300 mortgages approved for house purchase in September — approximately 30% lower than the monthly average in 2019.
Bob Singh, founder of Chess Mortgages, commented: "Malaise is the word I would use to describe the property market right now, but this data seems to suggest it is gathering momentum.
“October's uptick in prices has certainly come out of the blue based on what we're seeing.
“Activity levels are down in all areas of the market, from first-time buyers and home movers to landlords.”
Steve Griffiths, CCO at The Mortgage Lender, said: “A slight uptick in house prices will no doubt come as a surprise to many after a melancholy season for the property market.
“The figures from Nationwide indicate that buyers are still willing to make moves and capitalise on opportunities when they can.”
John Choong, senior equity research analyst at Investing Reviews, added: “This latest data is without doubt a bricks and mortar curveball.
“The fact that mortgage rates are also reducing on a weekly basis is starting to dissipate the affordability headwinds.
“Sentiment is also picking up as people feel that the interest rate peak may have been reached.
“With real wages also now trending positive, this should help to prop house prices up until demand returns in earnest."
Alex Lyle, director at estate agency Antony Roberts, stated: “More stock is coming onto the market at the right price and at less ambitious levels than in the past.
'While the market doesn’t feel as busy as it has been, a good address at the right price will sell, while overpriced, slightly compromised properties needing work are struggling.
“Sales are taking time to get through, chains are complicated, and negotiations can be drawn out.”
With more positivity, Verona Frankish, CEO at Yopa, said: “An increase in the monthly rate of house price growth — however incremental — demonstrates that the nation’s homebuyers still have an appetite to transact, even in tough market conditions.
“Of course, higher borrowing costs continue to dampen the market to an extent, with fewer buyers taking the plunge and property values remaining off the record pace set last year.”
Tomer Aboody, director of property lender MT Finance, noted: “Rising property prices reflect the slight increase in confidence the market has due to rates stabilising.
“Although prices remain lower than last year, we need to put this into context as mortgages were also cheaper then.
“If the government’s aim to half inflation remains on target, we should hopefully see a continued increase in confidence.”
