U.K. housing prices unexpectedly rise in October as supply remains at record-low levels

Housing prices in the United Kingdom surprisingly rose during the month of October as the country’s shortage of homes continued, with the supply of homes touching record-low levels during the period.

U.K. house-price growth rose 1.4 percent in October from a month earlier as the country’s shortage of homes continued, data released by the country’s mortgage-lender Halifax showed Monday. On the year, values in the three months to October were 5.2 percent higher, far below a peak of 10 percent annual growth in March this year, but still robust, the data showed.

The monthly increase brought average values to GBP217,411 (USD269,500). Further, the lender said last month that housing has been on a 'steady downward trend' and there is a clear evidence of a softening in activity.

"Very low mortgage rates and a shortage of properties available for sale should help support price levels," Bloomberg reported, citing Martin Ellis, Economist, Halifax.

Meanwhile, the Bank of England said last week that the housing market has remained more resilient than was anticipated since the Brexit vote, driven by positive consumer sentiment alongside record-low interest rates.