- Rain Newton-Smith, CBI director of economics
UK house price growth accelerated in October, adding to signs of renewed momentum in the housing market. House prices climbed by 0.6% this month after the 0.5% increase in September. Measured on a yearly basis, the reading rose 3.9% in October, up from the 3.8% annual gain in September. According to Nationwide, house prices had risen at an annual 3% to 4% over the past five months, which boded well for a solid increase in housing market activity. Meanwhile, the number of mortgages approved for house purchases declined slightly in September, the Bank of England's data showed. The total fell from 70,664 in August to 68,874 in September, but this was higher than the average of the previous six months of 66,900.
A separate report showed retail sales volumes declined in October after a surge last month. The overall balance of UK retail sales slowed to +19% over the year to October, down from 49% in September and notably below expectations, data from the Confederation of British Industries. Nevertheless, the outlook for sales remained resilient due to low inflation, increasing wages and looming Christmas shopping season.
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