The annual house prices grew by 4.6 per cent in October in the UK, according to the latest House Price Index released by Nationwide. Though the house price growth slowed down from 5.3 per cent in September, the market continues to maintain stability, as the house prices are unchanged taking into account the seasonal factors.
This trend of slowing down of house prices is unlikely to sustain for long, as the demand for housing grows while supply is poor. Plenty of other factors, such as slowdown of home construction activities, number of new homes entering the market and the new Development approvals are likely to keep the prices stable.
The UK house price growth has been stable over the last one-and-a-half-years, which is considered modest by the UK housing sector standards. Nationwide believes that strong labour market conditions and historically low borrowing costs should provide support to buyer confidence.
The Nationwide Index pointed out that mortgage approvals increased marginally though they remained weak by historic standards. At the same time, surveyors, who Nationwide asked, reported a modest increase in new buyer enquiries.
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Data releases point to fairly stable demand conditions in the near term. Mortgage approvals edged up modestly in September, though they remain weak by historic standards. Surveyors report that new buyer enquiries have increased modestly in recent months