"The low cost of borrowing, weak supply levels and a robust jobs market are preventing prices from falling more sharply".
- Mark Posniak, Octopus Property
UK house prices jumped unexpectedly on a monthly basis in October, despite signs of a slowdown seen in the previous six months. According to the UK's biggest lender, Halifax, the House Price Index advanced 1.4% in October, surpassing the 0.3% rise forecast. However, the October surprise growth could be a correction following September's modest rise of 0.3% and declined of 0.3% and 1.1% registered in August and July, respectively. Meanwhile, the preceding month's gain was revised up to 0.3% from the originally reported increase of 0.1%. The average price of a house in Britain climbed 1.4% to 217,411 pound last month, the biggest increase since March. Nevertheless, Halifax said that the annual house price inflation rose just 5.2% last month, the lowest level in more than three years, down from September's gain of 5.8% and a record high a 2016 record high of 10% seen in March. Separately, Nationwide reported last week that house price growth stalled in October for the first time in 16 months. However, according to Nationwide, property prices grew 4.6% on an annual basis in the same month. Analysts suggest that the UK housing market still remained under pressure from June's vote to leave the European Union last month.
© Dukascopy Bank SA