House prices unexpectedly rise in October - Nationwide

UK house prices unexpectedly rose in October amid "constrained" supply, according to a survey released on Wednesday.

House prices ticked up 0.9% on the month following a 0.1% increase in September, beating expectations for a 0.4% decline.

On the year, house prices were down 3.3% in October following a 5.3% slump in September.

The average price of a home now stands at £259,423.

Nationwide chief economist Robert Gardner said that nevertheless, housing market activity has remained "extremely weak", with just 43,300 mortgages approved for house purchase in September, around 30% below the monthly average prevailing in 2019.

"This is not surprising as affordability remains stretched. Market interest rates, which underpin mortgage pricing, have moderated somewhat but they are still well above the lows prevailing in 2021," he said.

"The 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 historically low levels."