Last month witnessed an unexpected surge in house prices as sellers opted to wait rather than accept lower offers, as revealed by a widely monitored survey.
Comparing month-to-month data, there was a 0.9% increase in prices in October, following a 0.1% rise in September, according to the Nationwide house price index.
Contrary to analysts’ predictions of a 0.4% decrease, the market experienced its most significant boost since March of the previous year.
This development reduced the yearly decline in house prices to 3.3%, marking the ninth consecutive month of decrease as the number of approved mortgages took a hit.
This ongoing trend of yearly reductions, starting in February, has brought the average house price down to £259,423.
Robert Gardner, Nationwide’s chief economist, commented, “The increase in house prices in October can be primarily attributed to the limited number of properties available in the market.
“There is a noticeable absence of forced sales, which would typically drive prices down, thanks to stable employment conditions and historically low levels of mortgage arrears.”
Recent data from the Bank of England revealed a significant drop in mortgage lending in September, with rising interest rates posing challenges for prospective home buyers.
The number of approved mortgages fell to 43,300, the lowest since January when the market was still recovering from the mini-budget and the subsequent turmoil in gilt markets.
