Nationwide Index Shows Rise in UK House Prices
UK house prices have risen by the largest amount in over a year, according to Nationwide’s latest house price index.
During October, house prices saw their biggest monthly rise since 2022.
However, property values are still down compared to a year ago. The monthly rise indicates that the market is inching towards correcting the recent slump.
But with prices low, the housing market represents an excellent opportunity for those looking to invest in investment properties to increase their property portfolio before house values rise significantly in the next few years.
How to Build a Property Portfolio, Get Started Now!
Tips on how to start building your property portfolio with tools for success.
How Much Did UK House Prices Rise in October?
Nationwide figures show house prices grew by 0.9% in October. In comparison, prices only grew by 0.1%.
The building society suggested that the rise was due to a lack of properties to meet demand.
Robert Gardner, the chief economist for Nationwide, said:
“It appears likely that a combination of solid income growth, together with modestly lower house prices and mortgage rates, will gradually improve affordability over time, with housing market activity remaining fairly subdued in the interim.”
Over the last year, property prices fell by 3.3% in October, 2% less than the 5.3% drop in September.
See our latest UK House Prices Forecast for a country-wide overview.
Final Day to Secure £30,000 Discount
Enquire today to qualify for our £30,000 discount on Manchester waterfront 2-bed property.
What Does This Mean for the UK Housing Market?
The rise in prices was a surprise to many, indicating that the market is healthier than previously thought,
Chief economic advisor to EY ITEM Club, Martin Beck, suggests that affordability in the market has improved with household earnings rising above inflation. He said:
“House prices unexpectedly rose in October on the Nationwide measure and by the largest amount since March 2022. Given the pressures facing the housing market, not least from higher mortgage rates, October’s increase may prove to be short-lived. But it reinforces the EY ITEM Club’s view that house prices are unlikely to see an outsized correction.
With pay growth still strong, the ratio of house prices to earnings has fallen, improving affordability on this measure. Meanwhile, healthy household balance sheets and a still-tight jobs market should keep mortgage defaults and forced sales down.”
£152k Required on Luxury 3-Bed Penthouse
14th floor 3-bed apartment with HUGE assured NET rental income and spa access.
How to Make the Most of the Current UK Buy-to-Let Market?
With house prices rising during October, property investors may consider investing in a UK buy-to-let before prices rise further.
Currently, the North West has some of the best property prices and yields on average. For instance, Liverpool has an average property price of £180,268 and rental yields that exceed 7% in certain postcodes. In comparison, the national average property price – according to HM Land Registry – is £291,044, and the average yield sits around 5.2%.
In addition, the North West has a capital growth prediction of 11.70% by 2027, which is the highest estimate for the country. In contrast, the UK estimate is 6.20%.
Want to get the most out of property investment? See the latest RWinvest insights for up-to-date UK housing market statistics!
