UK house prices rose 0.1% month on month in October, according to new data from Nationwide.

Robert Gardner, Nationwide’s chief economist, commented: “The price of a typical UK home increased by 2.4% year on year in October, though this represented a modest slowdown from the 3.2% pace recorded the previous month. House prices rose by 0.1% month on month in October, after taking account of seasonal effects.

“Housing market activity has remained relatively resilient in recent months, with the number of mortgage approvals approaching the levels seen pre-pandemic, despite the significantly higher interest rate environment. Solid labour market conditions, with low levels of unemployment and strong income gains, even after taking account of inflation, have helped underpin a steady rise in activity and house prices since the start of the year. Providing the economy continues to recover steadily, as we expect, housing market activity is likely to continue to strengthen gradually as affordability constraints ease through a combination of modestly lower interest rates and earnings outpacing house price growth”.

However the increase in the higher rate of stamp duty for additional dwellings by 2 percentage points to 5% (which took effect on 31 October) is likely to affect around 194,000 transactions nationally, around one in five residential transactions in England & Northern Ireland. For a typical buy to let purchase, this has been estimated to add approximately £4,000 to stamp duty costs and ultimately that will be borne by Sellers.

Reflecting on the latest data, Nathan Emerson, CEO of Propertymark, said: “As the wider economy has become more settled, it’s encouraging to witness greater affordability and confidence flow through the housing market. With strong hints we may see a steady reduction in base rates implemented over the coming months, there is substantial scope to round the year with an upbeat tone to be carried forward into 2025.