United Kingdom Nationwide Housing Prices YoY

The Nationwide House Price Index in the United Kingdom rose by 2.4% year-on-year in October 2024, easing from a 3.2% increase in September and coming in below the expected 2.8% rise. Still, this marked the eighth consecutive period of rising house prices. Robert Gardner, Chief Economist at Nationwide, noted that the housing market has shown resilience recently, with mortgage approvals nearing pre-pandemic levels despite higher interest rates. Strong labor market conditions, including low unemployment and rising incomes, have supported steady activity and house price increases this year. He added that if the economy continues to recover, housing market activity is expected to strengthen gradually as affordability improves with lower interest rates and faster income growth. On a monthly basis, house prices rose by 0.1%, slowing from a revised 0.6% growth in September and below the forecasted 0.3% rise.

The Nationwide House Price Index in the United Kingdom rose by 3.2% year-on-year in September 2024, accelerating from a 2.4% increase in August. This marked the seventh consecutive period of rising house prices and the strongest growth since November 2022. Average prices are now about 2% below the record highs seen in the summer of 2022. Robert Gardner, Chief Economist at Nationwide, noted that in recent months, income growth has outpaced house price growth, while borrowing costs have declined amid expectations that the Bank of England will continue cutting interest rates in the coming quarters. These factors have improved affordability for prospective buyers and supported a modest rise in activity and house prices, though both remain below historical norms. On a monthly basis, house prices increased by 0.7%, the highest growth in seven months, exceeding market estimates of a 0.1% rise and following a 0.2% decline in August.

The Nationwide House Price Index in the United Kingdom rose by 2.4% year-on-year in August 2024, up from a 2.1% increase in July, but below market expectations of a 2.9% rise. It marked the sixth consecutive period of rising house prices and was the strongest growth since December 2022. However, prices remain about 3% lower than the all-time highs reached in the summer of 2022. Robert Gardner, Chief Economist at Nationwide, noted that while house price growth and activity are subdued by historical standards, they remain resilient despite high interest rates and elevated price-to-earnings ratios. He added that if the economy continues to recover steadily, housing market activity is likely to gradually strengthen as affordability improves with slightly lower interest rates and earnings outpacing house price growth. On a monthly basis, house prices went down 0.2%, following a 0.3% rise in July and against market estimates of a 0.2% increase.