Surprising house price growth figures from Nationwide
Amidst speculation of falling house prices over the coming months the Nationwide Building Society has released figures that show house prices rose at their fastest pace in four months during the month of October.
September saw a fall of 0.6% in house prices, which was an unexpected fall according to many experts. However, many have been surprised by the figures released by Nationwide with regards to house price growth in October.
October saw house prices rise by 1.1% from the previous month according to the Nationwide figures, with the average house price now standing at £186,044. The annual rise came in at 9.7% from October 2006, which is a rise on September's figure of 9%. However, officials from the Nationwide have warned that these figures do not mean that house prices will not be affected by the turmoil and chaos on the financial markets.
One research firm expressed its surprise at the Nationwide figures, stating: "It seems at odds with the growing evidence of weaker buyer confidence, slowing mortgage demand and easing house price pressures shown by most other housing market indicators. As such, we would be wary of interpreting today's data as evidence that the housing market remains robust."
An official from the Royal Institute of Chartered Surveyors added: "The endless talk of the demise of the property market is, at the very least, a little premature. The 1.1% gain in prices in October represents the highest month-on-month increase this year and provides a stark contrast to the fears of outright price declines."
A number of factors are thought to be affecting house prices according to Nationwide officials, with one official stating: "Different factors could be driving the low level of instructions, including a reluctance to trade up amid current uncertainties and the fact that low unemployment is limiting the number of forced sales. The overall result is that the stock of unsold homes is still relatively low, and this is providing some residual support to prices," she added.
7th November 2007
- Opt for an FSA regulated lender [04.11.07]
When you are looking to take out a loan there are a number of things that you need to consider. Not only do you need to think about what type of loan to go for and how much you need to borrow but you also need to think about which lender to choose for your loan.
- Consolidating your debts effectively [02.11.07]
Many households in the UK have high levels of debt these days, and for many debt repayment can be a real struggle that involves juggling an array of repayments and stretching the budget in order to try and accommodate all of the repayments that have to be made each month.
- Shared ownership could suit first time buyers [02.11.07]
Over recent years first time buyers have been experiencing huge difficulties when it comes to getting onto the property ladder, with a number of factors making things increasingly difficult.
- UK consumers not keen on longer term fixed rate deals [29.10.07]
According to recent figures the majority of consumers in the UK tend to shy away from lender term fixed rate mortgage deals, despite the Chancellors determination to make such deals more commonplace and accessible to consumers in a bid to increase affordability and financial stability for homeowners
- Sharp drop in mortgage lending for September [29.10.07]
According to the latest figures released by the Council of Mortgage Lenders September saw a sharp drop in mortgage lending, which many experts state is yet another sign that the housing market is cooling down.
- One MPC member wanted to cut interest rates [26.10.07]
The minutes from the last Monetary Policy Committee meeting, which took place at the beginning of October, has shown that one member of the committee voted to actually lower interest rates by 0.25% this month.