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UK: annual price rise
According to the latest Nationwide house price index, UK house prices have experienced their first annual rise since March 2008...
The Building Society said prices were 2% higher in October than in the same month in 2008 and were up by 0.4% on the month, taking the average cost of a property to £162,038.
Month-on-month prices were up for the sixth consecutive month in October, according to the Nationwide.
Meanwhile, on a quarter-on-quarter basis, seen to be a more reliable indicator of house prices, declined slightly to 3.4% in October, down from 3.8% in September.
The recent gains in house prices have been fuelled by a shortage of homes up for sale, according to housing experts.
Commenting on today’s figures, Nationwide’s Martin Gahbauer said: "A moderation in the rate of house price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run."
"Although too early to tell for sure, it may also reflect a more natural level of stock available for sale coming to the market, alleviating some of the extreme shortages of property on the market seen during most of this year," added Mr Gahbauer.
The news comes just a day after the Bank of England reported a rise in mortgage approvals for the month of September.
According to the Bank, the number of mortgages approved for house purchase, but not yet lent, grew by 3,245 during the month to 56,215 - the highest level since March 2008, and more than double the record low of 27,257 last November.
Despite the positive news within the housing market, Nationwide warned the UK’s failure to emerge from recession in the July to September quarter may further hinder the housing market recovery.
Last week, the Office for National Statistics (ONS) revealed that the UK economy shrank by 0.4% in the July to September period, meaning the country is still in recession.
The fall in GDP means it is the first time the UK has endured six consecutive quarters without growth - the first time since the ONS began gathering the data in 1955.
Source: www.homeove.co.uk
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