The mortgage market in the UK could be impacted by changes in house prices throughout the nation.
New research from Nationwide has shown these costs rose by 0.6 per cent in October, although monthly movements have failed to establish strong trends in any direction in recent months.
It was noted that the increase in October more than offset the 0.4 per cent decline seen in September.
However, movement has not been stable in the last half-year, with three months witnessing climbs and three months experiencing declines.
Robert Gardner, chief economist at Nationwide, said the findings maintain “the pattern that has been evident since late 2010, with annual price growth remaining in a narrow band between +1.5 per cent and -1.5 per cent on all but two occasions”.
Mr Gardner explained that even though the UK has exited recession, the housing market still faces a challenging backdrop due to uncertain economic conditions.
The situation is likely to carry on affecting the mortgage market for some time, especially as Mr Gardner pointed out the economy remains extremely fragile.
