Strong annual growth in October

Posted: 20 Nov 2007 11:06:18 GMT

House price growth levelled out in October following a slump in September, according to Assetz.

House price growth levelled out in October following a slump in September, according to Assetz.

The firm has published its House Price Watch, which compiles all of the UK's leading house price indices.

It reveals that the average property increased in value by 9.7 per cent in the year leading to October 2007.

That signals a rise of 0.8 per cent on the figure recorded in October 2006, putting the average property price at £214,795.

"As expected, monthly house price growth has recovered from the dip recorded across the indices last month, and is back on track, showing an increase on the average price recorded in both September and August," said Stuart Law, chief executive of Assetz.

"Although house prices have begun to show signs of levelling out in recent months, the supply/demand imbalance, resulting from high levels of immigration and reluctance from sellers, continues to impact on the market," he continued.

Mr Law also believes that the Bank of England will cut the base rate of interest in December, while the majority of analysts predict a cut no sooner than February 2008.

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