UK house prices rose at a slightly faster rate in October, while the pace of increase was expected to remain unchanged, preliminary data from the Nationwide Building Society showed on Tuesday.
House prices rose 0.4 percent year-on-year after a 0.2 percent increase in September. Economists had expected the inflation rate to remain steady. In August, the house price inflation was 0.6 percent.
House price inflation remained below 1 percent for the eleventh straight month, Nationwide’s Chief Economist Robert Gardner said.
On a month-on-month basis, house prices rose 0.2 percent in October, reversing a similar size fall in September.
The average house price edged up to GBP 215,368 from GBP 215,352 in the previous month.
“Indicators of UK economic activity have been fairly volatile in recent quarters, but the underlying pace of growth appears to have slowed as a result of weaker global growth and an intensifying of Brexit uncertainty,” Gardner said.
“To date, the slowdown has centered on business investment, while household spending has been more resilient.”
Robust labor market conditions and low borrowing costs are likely offsetting the drag on the housing market activity from the uncertain economic outlook, the economist said.
Gardner expects hiring to recover if Brexit uncertainty lifts in the months ahead.
Further, the economist said there may be some upward pressure on mortgage rates as investors once again contemplate the potential for UK rate increases in the years ahead, but such increases are likely to be offset by trends in global financial markets.
The material has been provided by InstaForex Company – www.instaforex.com