UK house prices experienced their largest monthly increase in more than a year in October, rising by 0.9%, according to the Nationwide. However, they remained significantly lower than a year ago, with the average price falling 3.3% to £259,423.
The building society attributed the monthly increase to a lack of available properties to meet demand. While market interest rates that underpin mortgage pricing have fallen somewhat, they remain above levels seen in 2021.
Nationwide expects borrowing costs to remain relatively high compared to the last decade, but affordability should gradually improve with solid income growth and modestly lower house prices and mortgage rates over time.