U.K. house price inflation accelerated unexpectedly in October to the highest level in five months, the Nationwide Building Society said Thursday.
House prices climbed 3.9 percent year-over-year in October, slightly faster than September’s 3.8 percent rise. Economists had forecast prices to remain stable at 3.8 percent.
The latest rate of increase was the fastest since May this year, when prices grew 4.6 percent.
On a monthly basis, house prices went up 0.6 percent in October, following a 0.5 percent spike in the prior month. Meanwhile, economists expected a stable rate of growth for the month.
“Over the past five months annual price growth has remained in a fairly narrow range between 3 percent and 4 percent, broadly consistent with earnings growth over the longer term,” Robert Gardner, Nationwide’s chief economist, said.
“While this bodes well for a sustainable increase in housing market activity, much will depend on whether building activity can keep pace with increasing demand.”
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