UK Housing Prices Show Fastest Rise in Over Two Years in October

In October, home prices in the UK showed the fastest increase in over two years. According to a survey conducted by the Royal Institution of Chartered Surveyors (RICS), the balance of house prices rose from +11 in September to +16, reaching the highest level since September 2022, when former Prime Minister Liz Truss's economic plans disrupted the mortgage markets. The RICS survey was conducted between October 21 and November 7, with approximately two-thirds of responses received before Reeves unveiled his budget on October 30. While RICS noted that the outlook indicated by the survey has brightened, price expectations for the next three months increased from +12 in September to +20 in October. Tarrant Parsons, RICS's head of market analysis, stated, "The rise in bond yields following the budget and the overall increase in interest rate expectations in recent weeks will likely create a headwind for the market to navigate in the short term."