Nationwide Building Society reports October saw a slower pace in UK house-price growth, easing to 0.3% month on month from 0.5% in September. Annual growth stood at 2.4%, up from 2.2% the previous month, taking the average UK house price to £272,226 in October. The lender described the market as broadly stable, but buyers are adopting a cautious stance ahead of the Budget amid expectations of property tax changes and a softer labour market.

Experts said budget uncertainty and softer labour market conditions are weighing on sentiment. A senior UK economist at Pantheon Macroeconomics said prices have remained subdued but should rise gradually in the coming months, with some buyers waiting until the Budget is enacted. He noted that activity indicators point to solid demand and that a pickup could follow once policy details are clearer.

HMRC data published on Friday showed seasonally adjusted residential sales rose 1% between August and September to 95,980, about 4% higher than a year earlier. Estate agents described the figure as indicative of a market that has slowed in the run-up to the Budget but remains fundamentally solid, driven by lifestyle purchases. Zoopla noted some slowdown in deals for homes above £500,000 amid Budget uncertainty, while a Jackson-Stops partner cautioned about high-end activity ahead of potential tax reforms. Nationwide’s Robert Gardner said affordability could improve if income growth outpaces price growth, and that borrowing costs may ease further if Bank Rate falls in coming quarters.