UK House Prices See Slowest Growth Since 2024 Amid Rising Interest Rates

British house prices grew at their slowest pace since the beginning of 2024 during the month of October, weighed down by rising interest rate expectations that impacted the nation's property market. According to data published by the Nationwide Building Society on Friday, house prices increased by just 0.5 percent on an annual basis.

The figures showed a softer performance than the 0.8 percent rise recorded in September. Furthermore, the modest annual increase fell short of economists' forecasts, which had anticipated a growth rate of 0.6 percent for the month.

The cooling housing market coincides with a broader economic landscape characterized by central bank policy adjustments and shifting financial conditions across major global economies. As traders await an anticipated interest rate increase by the Bank of England, borrowing costs continue to influence consumer behavior and market activity.

While the UK property market experienced decelerating price growth in October, international markets also reported significant economic updates. In the United States, economic growth exceeded economist estimates in the third quarter, with real gross domestic product increasing by 3.4 percent following a 2.2 percent jump in the second quarter.

Meanwhile, the European economy faced unexpected contractions. Preliminary data revealed that the French economy contracted by 0.1 percent sequentially in the third quarter due to weak investment and exports, amid high borrowing costs and social unrest that clouded the outlook.

In monetary policy developments, the Bank of Japan kept its key interest rate unchanged at 1.25 percent following a rate hike the previous month, as underlying inflation aligns with its 2 percent target. Similarly, the European Central Bank left its key interest rates unchanged after raising them in September as policymakers evaluated the ongoing impacts of past monetary actions.