UK Nationwide house price growth misses forecasts, remains unchanged in October

Data released by mortgage lender Nationwide on Wednesday showed that UK house prices were unchanged in October after rising in monthly terms each of the previous 15 months. Data showed that British house prices were flat at 0.0 percent in October, compared with a monthly increase of 0.3 percent in September and missing median forecast for a rise of 0.2 percent.

On an annualised basis, prices rose by 4.6 percent, slower than September's increase of 5.3 percent and below a median forecast of 5.0 percent. It was the slowest annual price growth since January, but Nationwide economist Robert Gardiner said it was still in line with rates since early 2015.

"A 10 percent fall in housing market activity in recent months might be a lingering after-effect of April's introduction of a higher level of tax on properties bought by landlords and second homes," said Robert Gardiner.

UK house prices are likely to come under pressure as Britain launches its negotiations to leave the European Union, probably adding to uncertainty about the economy. Howard Archer, an economist with Markit HIS, expects house prices to fall by about 3 percent next year as UK starts Brexit negotiations.