Annual house prices surged by 5.8% in October

annual house price growth surged by 5.8% colorful houses

The latest Nationwide index shows that annual house price growth has surged by 5.8% in October. Its the highest level since January 2015.

The monthly rise in October was 0.8% after taking account of seasonal effects, following a 0.9% rise in September. This takes the average house price to £227,826.

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Nationwide chief economist Robert Gardner says:

“Behavioural shifts as a result of Covid-19 may provide support for housing market activity, while the stamp duty holiday will continue to provide a near term boost by bringing purchases forward.

“However, activity is likely to slow in the coming quarters, perhaps sharply, if the labour market weakens as most analysts expect, especially once the stamp duty holiday expires at the end of March.

“Behavioural shifts appear to be boosting housing market activity as people reassess their housing needs and preferences. Indeed, our poll in September suggested that 10% of those surveyed were in the process of moving as a result of the pandemic, with a further 18 per cent considering a move for the same reason.”

North London estate agent and former RICS chairman Jeremy Leaf commenting on the annual house price said:

“On the ground, we’re seeing fewer viewings, offers and longer transition times as lenders and conveyancers struggle with the backlog.

“However, we haven’t yet experienced widespread price re-negotiation or withdrawals from previously agreed deals.

“That feverish buying and selling of late summer has been replaced by activity at a pace we might have otherwise expected at this time of year.

 

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