House prices up on 12 months ago

UK house prices are now higher than they were a year ago, according to Nationwide.

Figures from the Building Society for this month showed that during the month prices increased by 0.4 per cent, making the average home value £162,038, two per cent above the October 2008 figure.

The increase was down on the 0.9 per cent rise seen in September, but Nationwide chief economist Martin Gahbauer said this was always likely to be the case, as the higher increases seen in recent months were “unlikely to be sustainable over the long run”.

He suggested that while the recent disclosure that Britain is still in recession could have some bad implications, the good news was that those looking for mortgages can expect to see interest rate staying low.

Association of Estate Agents chief executive Peter Bolton King welcomed the figures.

He said that a rise in buyer numbers was more important than price increases, saying the former factor is the one that is a “far firmer foundation for a real market recovery”.

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