House prices in surprise October rise but still down on last year

Nationwide data shows house prices had the biggest monthly rise in October for more than a year. 

However they were still down on a year ago, Nationwide said.

The 0.9% rise in prices was most likely due to there not being enough properties to meet demand, it said.

Activity in the housing market is still “extremely weak”, it added, as buyers grapple with higher mortgage rates.

“This is not surprising as affordability remains stretched,” said Robert Gardner, Nationwide’s chief economist.

“Market interest rates, which underpin mortgage pricing, have moderated somewhat but they are still well above the lows prevailing in 2021.”

On an annual basis the price of an average home fell 3.3% in October to £259,423 – down from £268,282 a year earlier.