House price growth still hearty says Nationwide

Posted: 31 Oct 2006 12:24:39 GMT

House prices have risen for the eighth consecutive month and are now eight per cent higher than last year, the Nationwide house price index has shown

House prices have risen for the eighth consecutive month and are now eight per cent higher than last year, the Nationwide house price index has shown.

House prices grew 0.7 per cent over the course of October, providing further evidence that interest rate rises of 0.25 per cent have had no effect on demand for property.

This was nonetheless cooler than the equivalent figures on July (0.9 per cent), August (0.8 per cent) and September (1.3 per cent).

"Following a sharp increase during September, the monthly rate of growth of house prices cooled in October," said Fionnuala Earley, Nationwide's group economist.

"However, the underlying trend in house prices is still firm," she added. Average prices are £12,215 up on the same period of 2005, at £169,623.

An anticipated 0.25 per cent increase in interest rates in November, as well as stretched affordability measures, would take some heat out of the market, predicted Ms Earley.

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