Across the UK, house prices are rising but falling in London

UNITED KINGDOM: In October, property prices in London decreased month over month, making the city's metropolitan area the only one in the UK to report a decrease. (Reported by news source)

According to the Office for National Statistics, prices in the city decreased 0.9% from September, while they increased 0.3% nationwide in the UK. In Scotland, the West Midlands, and the north-east of England, house prices rose by at least 0.9%.

As the Bank of England attempts to combat excessive inflation, mortgage rates have increased over the past few months, indicating forecasts of higher medium-term borrowing costs.

Separate statistics from mortgage lender Nationwide revealed that the average mortgage payment in London increased to 56% of wages in the third quarter, up from a recent low of 48% in the first quarter of 2020, and far higher than the country as a whole, which was 34%.

Senior UK economist at Pantheon Macroeconomics stated that she anticipated a peak-to-trough fall in house prices equal to around 8% over the next 12 months, reversing around one-third of the increase since the pandemic due to high mortgage rates, rising unemployment, and declining real household incomes.