UK house prices grow at slowest pace in two years as mortgage rates rise
Summary
UK house prices rose 0.5% in the year to October, their slowest annual growth in more than two years, according to Nationwide. Higher mortgage rates and weak buyer inquiries are weighing on demand, while analysts expect prices to remain subdued despite a new government scheme for first-time buyers.Key Facts
- The average UK property price was £273,566 in October, unchanged from September.
- Annual price growth slowed from 0.8% in September to 0.5% in October.
- The average five-year fixed mortgage rate reached 5.99%, and the average two-year rate was 5.97%, according to Moneyfacts.
- The Bank of England’s base rate remained at 3.75%; markets expected a possible increase to 4% the following week.
- Nationwide chief economist Robert Gardner said Middle East conflict had raised concerns about inflation and interest rates.
- The government confirmed a £4.7bn Your First Home scheme intended to help first-time buyers.
- Economists said the scheme might provide a modest boost, but house prices were likely to stay subdued next year.
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