UK house prices up slightly in October - Nationwide
Tuesday, 01 November 2011 10:24
House prices edged upwards in October, a new study from Nationwide has shown.
The average value of a property was up 0.4 per cent last month compared with the corresponding figure for the previous month, the building society's monthly House Price Index revealed.
October's average of £165,650 was also 0.8 per cent higher than a year ago, a development Nationwide's chief economist Robert Gardner described as a small slice of good news after six months of negative price growth.
"Given the challenging economic backdrop, October's data is encouraging, but it doesn't fundamentally change the picture of a housing market that is treading water," he said. "Property transaction levels remain subdued and prices essentially flat compared to last year.
"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 twelve months," he added.
Commenting on the figures, property buying agency Home Fusion director Nicholas Ayre remarked that it shows how bad the market is if these figures are considered good news.
"The housing market is hanging on for dear life," he explained. "It has been drifting listlessly for months, but now at least it is showing a flicker of hope. Average prices have finally recovered to where they were at this time last year. But that can't mask the fact that the number of sales is still paltry and the market is essentially stagnant."
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