UK House Prices Show Unexpected Strength in October: Nationwide

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High-rise apartments nether  operation  tin  beryllium  seen successful  the region  down  a enactment      of residential lodging  successful  southbound  London, Britain connected  Aug. 6, 2021. (Henry Nicholls/Reuters)

High-rise apartments nether operation tin beryllium seen successful the region down a enactment of residential lodging successful southbound London, Britain connected Aug. 6, 2021. (Henry Nicholls/Reuters)

LONDON—British house prices roseate past period astatine a faster complaint than expected arsenic robust request and a deficiency of caller homes coming to the marketplace kept up momentum, a survey showed connected Wednesday.

Mortgage lender Nationwide said location prices roseate by 0.7 percent successful monthly presumption successful October aft a 0.2 percent emergence successful September. A Reuters canvass of economists had pointed to different 0.2 percent increase.

The summation near location prices 9.9 percent higher than a twelvemonth previously, though this marked the weakest yearly maturation complaint since April.

Overall the survey underlined the spot of Britain’s lodging marketplace during the COVID-19 pandemic. Even the gradual withdrawal of taxation breaks connected spot purchases implicit the past fewer months has failed to earnestly dampen momentum.

“We expect location prices to proceed to bushed expectations successful the adjacent word earlier a gradual emergence successful owe rates applies the brakes successful the 2nd fractional of 2022,” said Andrew Wishart, spot economist astatine Capital Economics.

The result of Thursday’s Bank of England involvement complaint determination is 1 determinant of location prices successful the months ahead.

Financial marketplace pricing suggests BoE complaint setters are apt to rise borrowing costs—although economists are little definite and galore deliberation the BoE volition hold until February.

“The outlook remains highly uncertain,” said Nationwide main economist Robert Gardner.

“If the labour marketplace remains resilient, conditions whitethorn enactment reasonably buoyant successful the coming months— particularly arsenic the marketplace continues to person momentum and determination is scope for ongoing shifts successful lodging preferences.”

Reuters

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