1
Nov
OCTOBER HOUSE PRICE RISE
House prices increased year-on-year for the first time in six
months in October, with a 0.8% rise, the Nationwide building
society has said.
Prices went up by 0.4% in October compared with September,
making the average home worth £165,650.
But the Nationwide said the figures failed to shift the overall
picture of a housing market "treading water".
"Property transaction levels remain subdued and prices
essentially flat compared to last year," it said.
"The outlook remains uncertain, but with the UK economic
recovery expected to remain sluggish, house price growth is likely
to remain soft in the period ahead, with prices moving sideways or
drifting modestly lower over the next 12 months," said the
Nationwide's chief economist, Robert Gardner.
The quarter-on-quarter comparison showed prices having dropped
by 0.2% in the three months to the end of October compared with the
previous three months.
Declining sales
The Nationwide's figures are based on a sample of the building
society's own mortgage lending.
Recent data from other sources have suggested that sales may be
heading for a renewed downturn after a brief and modest revival in
the spring and summer.
Completed sales fell for two consecutive months in both August
and September, according to HM Revenue & Customs.
Mortgages approved for house purchase but not yet lent - a good
indicator of forthcoming trends - also fell in September.
That was the first drop in five months and suggest that sales
backed by a mortgage may dip further in the coming months.
"Average prices have finally recovered to where they were at
this time last year," said Nicholas Ayre of property buying agency
Home Fusion.
"But that can't mask the fact that the number of sales is still
paltry and the market is essentially stagnant."
Andrew Montlake of mortgage brokers Coreco said: "There seems to
be a two-tier system in place, with London and other high demand
areas holding their value."