Across the UK, year-on-year house price growth stood at 2.5%, up from 2.3% in September, the Nationwide Building Society has reported.
Property values edged up by 0.2% month-on-month in October, taking the average house price in the UK to £211,085.
Robert Gardner, Nationwide’s chief economist, said: “Annual house price growth remains within the 2-4% range that has prevailing since March.
“Low mortgage rates and healthy rates of employment growth are providing some support for demand, but this is being partly offset by pressure on household incomes, which appears to be weighing on confidence. He added: “The lack of homes on the market is providing support to house prices.”
Interest rate rises
Referring to speculation that the Bank of England base rate could possibly be about to rise back up to 0.5%, from its current low of 0.25%, Gardner commented: “The impact of a small rate rise on most UK households is likely to be modest.
“The proportion of borrowers directly impacted by a rate rise will be smaller than in the past, in part because the vast majority of new mortgages in recent years were extended on fixed interest rates.”