Investing.com – U.K. house prices rose more-than-expected in October, industry data showed on Tuesday.
In a report, U.K. mortgage lender Nationwide said its house price index rose 0.4% in October, beating expectations for a 0.1% gain.
U.K. house prices rose by an unrevised 0.1% in September.
Year-on-year, home prices in the U.K. rose at an annualized rate of 0.8% in October, after declining by 0.3% in the preceding month.
Commenting on the report, Nationwide's chief economist Robert Gardner said, “Given the challenging economic backdrop, October’s data is encouraging, but it doesn’t fundamentally change the picture of a housing market that is treading water. Property transaction levels remain subdued, and prices essentially flat compared to last year.”
“The outlook remains uncertain, but with the UK economic recovery expected to remain sluggish, house price growth is likely to remain soft in the period ahead,” Mr. Gardner added.
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.47% to trade at 1.6010.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 tumbled 3.5%, France’s CAC 40 plunged 3.55%, the FTSE 100 dropped 2.25%, while Germany's DAX sank 3.6%.
In a report, U.K. mortgage lender Nationwide said its house price index rose 0.4% in October, beating expectations for a 0.1% gain.
U.K. house prices rose by an unrevised 0.1% in September.
Year-on-year, home prices in the U.K. rose at an annualized rate of 0.8% in October, after declining by 0.3% in the preceding month.
Commenting on the report, Nationwide's chief economist Robert Gardner said, “Given the challenging economic backdrop, October’s data is encouraging, but it doesn’t fundamentally change the picture of a housing market that is treading water. Property transaction levels remain subdued, and prices essentially flat compared to last year.”
“The outlook remains uncertain, but with the UK economic recovery expected to remain sluggish, house price growth is likely to remain soft in the period ahead,” Mr. Gardner added.
Following the release of the data, the pound was down against the U.S. dollar, with GBP/USD slumping 0.47% to trade at 1.6010.
Meanwhile, European stock markets were sharply lower after the open. The EURO STOXX 50 tumbled 3.5%, France’s CAC 40 plunged 3.55%, the FTSE 100 dropped 2.25%, while Germany's DAX sank 3.6%.