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House price growth "firm" in October

New figures for the October housing market have shown "firm" growth with prices up by 0.7 per cent in total.

The new Nationwide house price index has revealed that the typical house price is £12,500 higher than it was in October 2005 and that annual returns on equities are outperforming house prices.

In September 2006, the average price of a UK property stood at £169,413 while the October figure has risen to £169,623.

Fionnuala Earley, Nationwide group economist, said that while the monthly rate of growth cooled, the overall picture in property prices was of a firm trend.

She added: "While the annual rate of growth moderated from 8.2 per cent to eight per cent in October, the three-monthly growth rate increased to 2.6 per cent.

"Recent housing market indicators have been firm and the latest approvals data from the Bank of England show that the August rise in interest rates did nothing to curb demand.

"With the expectation that the economy will remain in good shape in 2007, prospects for continued positive growth in both the housing and equity markets look fairly good."

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31/10/2006 10:43:16

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