Annual house price inflation accelerated to 2.4% in the year to October, according to the latest Nationwide House Price Index.

This was up from the 2.2% which the building society reported in the year to September.

Nationwide also revealed that house prices crept up by 0.3% on a monthly basis in October, to take the latest average price of a UK home to £272,226.

According to Nationwide’s chief economist, Robert Gardner, the UK’s 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 staying 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,” Gardner said.

“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.”

---