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| UK house price growth 'picks up' | UK house price growth 'picks up' |
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| UK houses prices rose at their fastest rate in four months during October, mortgage lender Nationwide has said. | |
| According to the lender's latest monthly survey, prices rose 1.1% in October from the previous month, taking the average house price to £186,044. | According to the lender's latest monthly survey, prices rose 1.1% in October from the previous month, taking the average house price to £186,044. |
| On an annual basis, house prices rose by 9.7% from the same month in 2006. | On an annual basis, house prices rose by 9.7% from the same month in 2006. |
| However, the Nationwide said that it would be "misguided" to view the rise as proof that house prices were immune to problems in financial markets. | However, the Nationwide said that it would be "misguided" to view the rise as proof that house prices were immune to problems in financial markets. |
| "While some may be tempted to interpret October's numbers as a sign that house prices are immune to deteriorating affordability and tightening credit conditions, such a conclusion would be misguided," said Nationwide economist Fionnuala Earley. | |
| According to the Nationwide, house prices are currently being supported by a number of factors, including the low level of properties coming onto the market. | |
| "Different factors could be driving the low level of instructions, including a reluctance to trade up amid current uncertainties and the fact that low unemployment is limiting the number of forced sales," said Ms Earley. | |
| "The overall result is that the stock of unsold homes is still relatively low, and this is providing some residual support to prices," she added. | |
| At the same time, the Nationwide said that other indicators were also pointing to a slowing housing market, including a fall in mortgage approvals reported by the Bank of England and a drop in buyer inquiries as seen by surveyors. | |
| Last week the Land Registry for England and Wales reported that annual property price inflation had slowed in September to 8.7% from 9.4% in August, describing this as a "noticeable dip". | |
| Other recent surveys, from big mortgage lenders, the Royal Institution of Chartered Surveyors (Rics) and the Department of Communities and Local Government, have all been pointing in the same direction. |