1st Nov 2024 07:57
(Alliance News) - UK house price growth slowed last month, numbers from mortgage lender Nationwide showed on Friday.
Nationwide said annual house price growth ebbed to 2.4% last month, from 3.2% in September. On a monthly basis, prices edged up 0.1%. They had risen by 0.6% in September from August.
The average UK house price now stands at GBP265,738, according to Nationwide.
"Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment. Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year," Nationwide analyst Robert Gardner said.
"Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth."
Gardner said the change to stamp duty rules announced in Wednesday's UK government budget could bring forward transaction activity, as buyers look to get deals done before measures come into effect.
From the end of March, the temporary increase in the nil rate stamp duty thresholds will end. For first-time buyers of a home under GBP500,000, the nil rate band falls to GBP300,000 from GBP425,000 currently. For other home buyers, the nil rate band threshold is to decline to GBP125,000, from GBP250,000.
"This will lead to a jump in transactions in the first three months of 2025 (especially March), and a corresponding period of weakness in the following three to six months," Gardner added.
By Eric Cunha, Alliance News news editor
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