The rate of annual house price growth rose from 2.2% in September to 2.4% in October, latest Nationwide house price index shows.
Prices increased by 0.3% month-on-month, after taking account of seasonal effects.
Robert Gardner, Nationwide's chief economist, said: “The housing market has remained broadly stable in recent months, with house prices rising at a modest pace and the number of mortgages approved for house purchase maintained at similar levels to those prevailing before the pandemic struck.
“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all time highs.
“Looking forward, housing affordability is likely to improve modestly if income growth continues to outpace house price growth as we expect. Borrowing costs are also likely to moderate a little further if Bank Rate is lowered again in the coming quarters.
“This should support buyer demand, especially since household balance sheets are strong – indeed, in aggregate the ratio of household debt to disposable income is at its lowest for two decades."
Nathan Emerson, CEO at Propertymark, commented: “As the year continues to unfold, we have seen challenges and achievements in almost equal measure. It is positive for those on the housing ladder to see them accumulate more equity. However, the flip side is that it remains ever more demanding for first-time buyers to attain a foothold on their housing journey.
“Three base rate dips have helped increase consumer affordability; however, we still have a rate of inflation that is near double what the Bank of England is hoping for. We have seen stamp duty threshold changes disrupting sales trends for those in England and Northern Ireland earlier this year, and we now have the Autumn Budget just around the corner which may influence the smooth flow of property transactions, with many people holding out to see what changes may potentially be announced.”
Guy Gittins, CEO of Foxtons, said: “The latest Nationwide figures suggest that the housing market momentum has remained steady, with further upward price growth on both a monthly and annual basis reflecting cautious confidence within the market.
"With inflation holding firm at 3.8% for the third consecutive month, the prospect of a base rate cut before Christmas remains on the table. This will only help to boost current market sentiment, so any ‘wait-and-see’ approach adopted by buyers ahead of the upcoming Autumn Budget is likely to be short lived.
"As the year closes out, we expect market activity to strengthen in line with traditional seasonal trends, as motivated buyers and sellers push to complete before year-end or start 2026 on a positive footing.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, added: “While Nationwide reports little change in average house price data, on the ground the property market remains sluggish, particularly at the higher end, as buyers and sellers sit tight ahead of the Autumn Budget. London property is directly tied to politics and the wider economy, and the drawn-out uncertainty over potential tax changes is freezing activity and costing the Treasury in lost stamp duty.
“Any talk of a mansion tax or further property levies risks inflicting real damage. Bringing in another tax layer, and the red tape that comes with valuing such properties, would create huge administrative costs, push some homeowners into negative equity and risk a self-inflicted crisis in the high-end market."
