Marginal house price rise in October

Posted: 29 Nov 2007 12:12:08 GMT

House prices increased by 0.1 per cent in October, according to the latest Land Registry House Price Index.

House prices increased by 0.1 per cent in October, according to the latest Land Registry House Price Index.

The report shows that prices increased marginally, taking annual inflation to 8.1 per cent.

It means that the average property price was £184,346 in the month, with Wales the best performing region.

Monthly inflation in Wales reached two per cent, while the east of England followed (0.9 per cent), as did the West Midlands (0.8 per cent), the south-east (0.7 per cent) and the north-east (0.4 per cent).

Although overall growth was slightly subdued, Howard Archer from Global Insight said that there are many positives to take from the report.

"We believe that the downside for house prices is likely to be limited by a lack of supply, the increasing number of households, high employment and the fact that few vendors are currently having to sell for 'distressed' reasons," he said.

"Meanwhile, the growing evidence of a significantly slowing housing activity boosts the case for the Bank of England to cut interest rates by 25 basis points to 5.5 per cent in December. The decision currently looks balanced on a knife edge," added Mr Archer.

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