House prices climbed by less than expected last month and barely grew against September, Nationwide has reported.
Nationwide’s house price index ticked up just 0.1% in October on a seasonally adjusted basis, missing expectations for a 0.3% increase.
Growth slowed on an annual basis, with prices increasing by 2.4% in the year to October and slowing against the 3.2% climb recorded in September.
This took the average price of a house in the UK to £265,738.
Nationwide economist Robert Gardner noted the housing market “remained relatively resilient” as solid labour market conditions continued to help “underpin a steady rise in activity”.
“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,” he added.
An end to increased stamp duty nil-rate thresholds next March is set to lead to a jump in housing transactions early next year, Gardner said, before prompting weakness later on.
Chancellor Rachel Reeves had confirmed an end to the higher thresholds in Wednesday’s Budget, meaning first-time buyers will pay stamp duty on homes worth over £300,000, rather than £425,000 as before, and others charged on purchases above £125,000.
“However, the swings in activity are likely to be somewhat less pronounced, in this instance, given that the stamp duty reduction has been in place for some time and its planned expiry was well-known,” Gardner added.