2018.11.0703:50:00UTC+00UK House Price Inflation Slowest Since March 2013: Halifax

UK house price inflation eased sharply in October to its lowest level since March 2013, survey data from IHS Markit and Lloyds Banking Group unit Halifax showed on Wednesday.

The Halifax house price index rose 1.5 percent year-on-year in the three months to October, which was sharply slower than the 2.5 percent increase in September. Economists had forecast a 1.3 percent climb.

"This remains within our forecast annual growth range of 0-3 percent for 2018," Halifax Managing Director Russell Galley said. House prices continue to be supported by the fact that the supply of new homes and existing properties available for sale remains low, Galley said. Further support comes from an already high and improving employment rate and historically low mortgage rates which are creating higher rates of relative affordability. "We see this continuing to be the case over the coming months and we remain supportive of our 0-3 percent forecast range," Galley added. On a month-on-month basis, house prices rose 0.7 percent in October after a 1.3 percent decline in September and a 0.2 percent fall in August. Economists had predicted a 0.8 percent increase.

The average house price was GBP 227,869 versus GBP 224,686 in the same month last year.