UK House Prices Soar Amid Economic Uncertainty

British house prices increased by 0.3% in October, despite predictions from economists of no change. The rise precedes the finance minister's budget, possibly impacting market sentiment. Nationwide's data indicates resilience in the market due to consumer confidence and strong household balance sheets amidst high mortgage rates.

In a surprising turn of events, British house prices witnessed a substantial rise in October, with figures from lender Nationwide revealing a 0.3% increase. This growth defied economists' forecasts, who expected stability in the market. The housing sector's dynamics seem to defy economic pressures as demand persists.

The Nationwide house price index surged by 2.4% on an annual basis, a marked increase from September's 2.2%. This comes as economists projected a modest 2.3% rise. The report highlights the sector's resilience amid concerns over subdued consumer confidence and employee market instability.

While some indicators show a slowing of price growth due to potential tax increases in the upcoming budget, Nationwide's Chief Economist Robert Gardner stresses improved housing affordability if income growth outpaces house price growth. Experts also foresee moderated borrowing costs, boosting buyer demand.

(With inputs from agencies.)