UK house price growth slows as buyers await budget decisions

UK house price growth eased in October as prospective buyers delayed purchases ahead of the upcoming budget, amid speculation over potential new property taxes.

Data from Nationwide Building Society showed that average house prices rose by just 0.3% month-on-month in October, compared with 0.5% in September.

The average home now costs £272,226, up slightly from £271,995 the previous month. On an annual basis, prices increased 2.4%, up marginally from 2.2% in September.

Analysts say many buyers are sitting on the sidelines as they await clarity from Chancellor Rachel Reeves’s 26 November budget, which could include a new tax on homes sold for more than £500,000.

Despite the slowdown, experts noted the market’s resilience. Anthony Codling of RBC Capital Markets said: “Homebuyers are waiting to see what next month’s budget will bring. If the housing market is one thing, it is resilient.”

Estate agents also reported sluggishness, particularly in higher-end properties. Amy Reynolds of Antony Roberts estate agency in west London described the market as quiet at the top tier.

Nationwide’s chief economist, Robert Gardner, said the housing market had shown broad stability despite weaker consumer confidence and higher borrowing costs.

He noted that while mortgage rates remain more than double their pre-pandemic levels, falling interest rates and steady income growth could help ease affordability pressures in the coming months.

Gardner added, “House prices are near record highs, yet demand remains steady, showing how resilient the market continues to be.”

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