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Investing.com -- UK house prices increased by 2.4% annually in October, up from 2.2% in September, according to Nationwide’s House Price Index released Friday.
The monthly change showed a 0.3% increase, following a 0.5% rise in September. The average UK house price now stands at £272,226.
Robert Gardner, Nationwide’s Chief Economist, noted that the housing market has remained stable in recent months despite challenging economic conditions.
"Against a backdrop of subdued consumer confidence and signs of weakening in the labor market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all time highs," Gardner said.
The report suggests housing affordability may improve if income growth continues to outpace house price increases. Lower borrowing costs are also expected if the Bank of England reduces interest rates in coming quarters.
Nationwide’s research revealed that kitchen and bathroom renovations were the most popular home improvements among homeowners in the past five years, with 71% undertaking either or both projects.
Green improvements are gaining popularity, with 34% of renovating homeowners making environmentally friendly upgrades. Solar panel installation was the most common green improvement, chosen by 56% of those making eco-friendly changes.
Younger homeowners aged 25-34 showed the strongest interest in green improvements, with 69% of renovators in this age group making such changes. In contrast, only 18% of homeowners aged 55 and above made green improvements.
The analysis also showed that adding space through extensions or loft conversions can significantly increase property values. Adding a double bedroom can boost the value of a two-bedroom house by 13%, while adding a loft conversion with a bedroom and bathroom can increase a three-bedroom house’s value by up to 24%.