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The uptick last month is thought to be due to fewer properties coming on to the market.<\/p>\n
However, values were down 3.3% compared with October last year, with an average price of \u00a3259,423, the Nationwide said.<\/p>\n
Robert Gardner, the building society\u2019s chief economist, said: \u201cThe uptick in house prices in October most likely reflects the fact that the supply of properties on the market is constrained. There is little sign of forced selling, which would exert downward pressure on prices, as labour market conditions are solid and mortgage arrears are at low levels. Activity and house prices are likely to remain subdued in the coming quarters.<\/p>\n
\u201cDespite signs that cost-of-living pressures are easing, with the rate of inflation below the rate of average earnings growth, consumer confidence remains weak and surveyors continue to report subdued levels of new-buyer enquiries.\u201d<\/p>\n
He said that with the Bank of England base rate not expected to fall significantly in the years ahead, \u201cborrowing costs are unlikely to return to the historic lows seen in the aftermath of the pandemic\u201d.<\/p>\n
He added: \u201cInstead, it appears likely that a combination of solid income growth, together with modestly lower house prices and mortgage rates, will gradually improve affordability over time, with housing market activity remaining fairly subdued in the interim.\u201d<\/p>\n
Jeremy Leaf, a North London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors, said: \u201cHigh mortgage rates and inflation may be compromising buyer demand but strong employment and shortage of properties for sale in areas of highest demand is keeping prices strong.\u201d<\/p>\n
Anil Mistry, at Leicester-based mortgage broker RNR Mortgage Solutions, said: \u201cWe experienced an unexpectedly high volume of enquiries in October, with most coming from first-time buyers. There\u2019s life in the market yet.\u201d Tom Bill, head of UK residential research at estate agent Knight Frank, said: \u201cSentiment in the UK housing market is weak but unlike the early months of Covid or the period following the mini-Budget, there is no single cause.\u201d<\/p>\n
He added: \u201cThe seasonal bounce in activity didn\u2019t happen this autumn, although price falls have been kept in check by weak supply.<\/p>\n
READ MORE <\/strong> House price crash: UK market ‘extremely weak’ as prices drop by \u00a335k on average<\/strong><\/p>\n \u201cWe expect UK prices to fall by 7% this year and 4% next year as inflation comes under control and mortgage rates stabilise.\u201d<\/p>\n Mark Harris, head of mortgage broker SPF Private Clients, said: \u201cWhile interest rates appear to have peaked, those hoping rates will move swiftly downwards again to the rock-bottom levels of the recent past are likely to be disappointed.\u201d<\/p>\n He said those relying on mortgages \u201care more price sensitive on the back of ongoing affordability concerns\u201d.<\/p>\n Jamie Lennox, director at Norwich-based \u201cThe base rate is not likely to decline significantly for some time due to inflation.<\/p>\n \u201cHowever, as mortgage rates fall, we are now seeing more borrowers looking to jump to secure a deal. First-time buyers are particularly active.\u201d<\/p>\n Matt Thompson, at estate agent Chestertons, said: \u201cThe vast majority of buyers have accepted that interest rates are here to stay.\u201d<\/p>\n David Hollingworth, at L&C Mortgages, said: \u201cThe lack of forced selling is encouraging but prices are likely to feel more downward pressure in the near term.<\/p>\n \u201cThe hope will be more activity will gradually return to the market next year, as the more stable mortgage market and the prospect of lower inflation helps to further the current falls in mortgage rates.\u201d<\/p>\n Nathan Emerson, boss of Propertymark, said the property professionals\u2019 body found a slight fall \u201cin the number of available properties for sale at each member branch in September 2023.<\/p>\n \u201cThis, fused with issues regarding the cost-of-living crisis, continues to affect the market overall.\u201d<\/p>\n Simon Gerrard, managing director of Martyn Gerrard Estate Agents said: \u201cWhile prices are still below where they were a year ago, the Bank of England\u2019s recent decision to freeze the interest rate has clearly restored a good amount of buyer confidence.\u201d<\/p>\n
broker Dimora Mortgages, said: \u201cOctober was a strong month in terms of mortgages submitted following a quiet August and first half of September. But the market is still very quiet in historical terms and there\u2019s certainly no rebound yet.<\/p>\n\n