UK house price growth slows as buyers ‘sit on sidelines’ before budget
British house price growth slowed in October, according to lending data, with analysts suggesting that buyers are “sitting on the sidelines” before a budget that may bring new property taxes.The average house price rose by 0.3% month on month in October, Nationwide said, down from 0.5% in September.The average price of a home was £272,226, up from £271,995 in September.
On an annual basis, house price growth rose slightly, to 2.4% in October compared with 12 months ago, up from a 2.2% annual rate in September.The continued growth came despite some reports of a slowdown in sales of more expensive houses, which may come under more focus in the budget on 26 November.Rightmove, a property listing website, this month also reported “resilience” in the number of properties coming to market, although it added that there was not the usual “autumn bounce” in asking prices.
Anthony Codling, a housebuilding analyst at RBC Capital Markets, an investment bank, said: “Homebuyers sit on the sidelines waiting to see what next month’s budget will bring,“If the housing market is one thing, it is resilient,” he added,“House prices are at close to all-time highs but mortgage rates more than double where they were before Covid, and the prospect of further rate cuts will underpin house prices,”Treasury officials have been considering a new tax on the sale of homes worth more than £500,000, although it is not yet clear whether the chancellor, Rachel Reeves, will choose to implement it,Amy Reynolds, the head of sales at Antony Roberts, an estate agent in wealthy west London, said the market was “sluggish, particularly at the higher end”.
At the same time, lower interest rates have helped to support activity.The Bank of England last lowered borrowing costs in August, with another cut expected at its meeting on Thursday.Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionRobert Gardner, Nationwide’s chief economist, said that the market had exhibited broad stability in recent months, with continued rises in house prices and a similar number of mortgages approved for house purchases as in the period before the coronavirus pandemic caused huge volatility.The stability came despite economic conditions that might usually be associated with falling prices – notably, much higher borrowing costs compared with five years ago.“Against a backdrop of subdued consumer confidence and signs of weakening in the labour market, this performance indicates resilience, especially since mortgage rates are more than double the level they were before Covid struck and house prices are close to all-time highs,” Gardner said.
Nationwide said it expected housing affordability would improve modestly in the coming months if income growth continued to outpace house price growth, as well as a further easing in borrowing costs.
Ministers’ claims to have helped JLR in doubt as £1.5bn support left untouched
Jaguar Land Rover has not drawn down any of a £1.5bn loan facility guaranteed by the government, with suppliers expressing anger over ministers’ claims to have supported the carmaker’s supply chain after a crippling hack.Britain’s biggest automotive employer was forced to shut down all of its wholly owned factories from 1 September for more than a month, after cyber-attackers compromised key computer systems.Liam Byrne, the Labour MP who heads of parliament’s business select committee, on Friday wrote to the business secretary, Peter Kyle, asking for clarification as to whether any money had reached JLR, and if the aid was requested by the carmaker.Suppliers to JLR have privately expressed anger about the government’s messaging, which appeared to take credit for helping them
Amazon shares surge as AI boom fuels cloud growth; Nvidia boss says selling chips in China is Trump’s call – as it happened
Time to recap.Amazon is leading the charge in the US stock market today, with its shares surging by about 11% after its third quarter earnings beat expectations last night.The tech giant reported a 20% surge in sales at its cloud computing division, Amazon Web Services, to $33bn thanks to demand for computing power for artificial intelligence.In the UK, the tinned tuna maker Princes Group has kicked off a float with a valuation of nearly £1.2bn in a boost for the London stock market
OpenAI thought to be preparing for $1tn stock market float
OpenAI is reportedly gearing up for a stock market listing valuing the company at $1tn (£760bn) as soon as next year, in what would be one of the biggest ever initial public offerings.The developer behind the hit AI chatbot ChatGPT is considering whether to file for an IPO as soon as the second half of 2026, according to Reuters, which cited people familiar with the matter. The company is thought to be looking to raise at least $60bn.A stock market float would give OpenAI another route to raising cash, supporting ambitions by the chief executive, Sam Altman, to splash trillions of dollars on building datacentres and other forms of infrastructure needed for the rapid buildout of its chatbots.During a staff livestream on Tuesday, Altman was reported to have said: “I think it’s fair to say it [an IPO] is the most likely path for us, given the capital needs that we’ll have
Google Pixel 10 Pro Fold review: dust-resistant and more durable foldable phone
Google’s third-generation folding phone promises to be more durable than all others as the first with full water and dust resistance while also packing lots of advanced AI and an adaptable set of cameras.The Guardian’s journalism is independent. We will earn a commission if you buy something through an affiliate link. Learn more.The Pixel 10 Pro Fold builds on last year’s excellent 9 Pro Fold by doing away with gears in the hinge along its spine allowing it to deal with dust, which has been the achilles heel of all foldable phones until now, gumming up the works in a way that just isn’t a problem for regular slab phones
Wallabies firing again in time for England clash after return to free-running DNA
If only Henry Slade had managed to stop Ben Donaldson getting that offload away, if only Ollie Sleightholme had been able to make that wrap-up tackle on Len Ikitau, if only Marcus Smith was able to catch Max Jorgensen. But Slade didn’t, Sleightholme couldn’t, Smith wasn’t, and Jorgensen scored in the corner. This time last year the Wallabies beat England 42-37, their first victory against them at Twickenham in nine years, and it was, the players will tell you themselves, the moment when everything changed. “This game last year was a big turning point for us as a group,” says the Australia captain, Harry Wilson. “It really made us believe that on our day we can beat anybody in the world
Women’s tennis thriving on the court as season wraps but WTA must catch up
The final weeks of the women’s tennis season showcased one last twist in the furious race to determine the qualifiers for the WTA Finals. Elena Rybakina, the 2022 Wimbledon champion, finally caught fire after a year of near misses, bulldozing through her opponents to win a title in Ningbo, China that solidified her spot in Riyadh among the eight best players in the world.Just as significant as Rybakina’s qualification, though, was its consequences for the player she usurped. Mirra Andreeva, the 18-year-old prodigy who won WTA 1000 titles in Dubai and Indian Wells this year, had seemed like a sure bet to qualify in singles for the finals. Her failure to do so underscores the fact that this year has been the toughest and most competitive women’s tennis season in years
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