Monday, March 4, 2024
HomeboeHouse prices rise unexpectedly in October due to lack of supply, says...

House prices rise unexpectedly in October due to lack of supply, says lender

Published on

Interview with an Anonymous Billionaire’s Son: Navigating Wealth and Responsibility

'ABS' is pictured above, with the promised anonymity on face and location. FinanceNews.co.uk (FN): Today, Mel Kern has a unique opportunity to speak with an...

UK House Prices Show Unexpected Rise in October Despite Market Challenges

British house prices defied expectations by unexpectedly rising 0.9% in October compared to September, according to mortgage lender Nationwide. However, analysts cautioned that this increase may not indicate a turnaround in the market, which has been grappling with a surge in borrowing costs. Year-on-year, prices in October still experienced a decline of 3.3%, though this was less severe than the 5.3% drop seen in September.

Economists polled by Reuters had initially forecasted a monthly decrease of 0.4% and a year-on-year drop of 4.8%. The surprising uptick in prices is mainly attributed to a shortage of available homes for sale, explained Robert Gardner, Chief Economist at Nationwide. This limited supply has created a situation where demand is outstripping availability, putting upward pressure on prices.

Gardner also noted that forced selling of homes, which typically drives prices down, has been minimal. He credited this to the low unemployment rate, which has helped households manage their increased mortgage costs. Despite the recent rise in borrowing costs, the data suggests that homeowners are generally able to handle their financial commitments.

The Bank of England (BoE), in its efforts to curb inflation, has raised interest rates 14 times since December 2021 until August 2023. As a result, mortgage rates have soared to levels not seen since 2008. However, analysts expect the central bank to maintain the Bank Rate at its current level in the upcoming meeting on Thursday.

The unexpected rise in house prices provides some respite for homeowners and investors alike, who have been concerned about the impact of rising borrowing costs on the property market. Nevertheless, experts urge caution and deem it premature to conclude that the market is on a sustainable path to recovery.

The housing market is a significant indicator of the overall health of the UK economy, and fluctuations can have far-reaching implications. As such, economists and policymakers will closely monitor developments in the coming months to assess whether the recent rise in prices is merely a temporary anomaly or a more enduring trend.

As the UK continues to grapple with the economic fallout from the pandemic, affordability remains a key concern for many. Experts emphasize the need for an increase in the supply of affordable housing to ensure the long-term stability and accessibility of the property market for all segments of society.

While the unexpected rise in house prices may be encouraging for homeowners, it is important to view the data within the larger context of the challenges the market currently faces. With the Bank of England’s decision on interest rates looming, further insights will be gained to determine the future trajectory of the housing market in the United Kingdom.

More detail via Daily Mail Online here… ( Image via Daily Mail Online )

Latest...

Erc-7621: A Game-Changer in Tokenized Investment Fund Management

Alvara Leads with Implementation of New ERC-7621 Token Standard

Lockbit ransomware gang disrupted by international operation

Ransomware group LockBit is disrupted by a global police operation that includes 2 arrests

Rhode Island-based Attorney John Deaton Announces Republican Run Against Sen. Elizabeth Warren

R.I. attorney John Deaton moves to Swansea, announces run against Sen. Elizabeth Warren

Bitcoin & Crypto Fund Management Revolution with ERC-7621 Token Standard

Alvara Protocol Leverages New ERC-7621 Standard for Fund Management Revolution

More like this

Erc-7621: A Game-Changer in Tokenized Investment Fund Management

Alvara Leads with Implementation of New ERC-7621 Token Standard

Lockbit ransomware gang disrupted by international operation

Ransomware group LockBit is disrupted by a global police operation that includes 2 arrests

Rhode Island-based Attorney John Deaton Announces Republican Run Against Sen. Elizabeth Warren

R.I. attorney John Deaton moves to Swansea, announces run against Sen. Elizabeth Warren