UK house prices rose more quickly than expected in October
UK house prices increased by more than economists had been expecting in October.
Prices as measured by mortgage lender Halifax’s home price index advanced by 0.5% month-on-month in October and by 9% year-on-year, with the latter being a nine-month low.
Economists had been expecting a rise of 0.3% (8.5% year-on-year).
“With housing market activity clearly off its early-2014 highs, we suspect house prices will generally rise at a more restrained rate over the coming months,” IHS Global Insight’s chief UK+European economist, Dr. Howard Archer, explained to clients in a note.
The slowdown in the underlying trend of house price increases is patent in the fall seen in the quarterly rate of growth since the start of the year, from the 3.1% gain seen in February/January to 1.4% in October.
The possibility does exist that the significant likelihood that the Bank of England will not lift Bank Rate before mid-2015 may provide a near-term lift to housing market activity and, possibly, prices as well, Dr.Archer added.