House price growth hits record for 2007

Posted: 31 Oct 2007 10:47:45 GMT

Homebuyers have been boosted by the news that house prices increased by 1.1 per cent between September and October.

Homebuyers have been boosted by the news that house prices increased by 1.1 per cent between September and October.

Figures from Nationwide show that month-on-month growth picked up to reach its highest level this year.

The 1.1 per cent monthly growth follows a 0.7 per cent increase in September and may be a sign that the market is recovering from the recent turmoil that followed the global credit crisis.

"House prices recorded a surprisingly strong increase of 1.1 per cent in October, tying it with June for the highest month-on-month growth rate so far in 2007," said Fionnuala Earley, chief economist at Nationwide.

"The average price of a typical UK property was £186,044 in October, £16,421 more than the same month last year," she continued.

Annual inflation also increased in October, rising from nine per cent in September to 9.7 per cent.

The figures follow strong results from the Land Registry, which put price growth in September at 0.4 per cent, and Your Move, which showed that property prices increased by 1.2 per cent in October.

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