House prices did pick up again in October but as of yet it is still too soon to say whether this marks a turning point for the market, according to a new survey.
The Nationwide building society’s latest property survey found that house prices rose by 1.3 per cent in October, following on from a 1.8 per cent rise in September.
This puts the annual growth rate at 3.3 per cent, with the average price of a house in the UK now standing at £157,107.
“We think that it is far too early to say that the market has reached a turning point and that prices will continue to accelerate from here,” commented Nationwide group economist Fionnuala Earley.
She continued: “Affordability and overall debt levels will still have to adjust to more comfortable levels before we can expect any widespread increase in demand and thus prices.”
Nonetheless, the Bank of England has announced that the number of new mortgage approvals ñ generally accepted as a good indicator of future market activity ñ has risen to its highest level since June 2004.
Nationwide claims that the recent upturn in house prices is mainly due to the cut in UK interest rates.
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