Property is still strong
HOUSE price growth remained robust during October with prices rising by 1.1% despite weakening demand, figures showed today.
Nationwide Building Society said the “surprisingly strong increase” equalled the 1.1% gain seen during June, making it the joint-biggest monthly rise so far during 2007. At the same time, annual house price inflation bucked its recent downward trend and increased to 9.7%, up from 9% in September.
The figures fly in the face of mounting evidence that the housing market is slowing down in response to five interest rate rises since August last year and tighter lending conditions by banks and building societies. Earlier this week property information website Hometrack said house prices fell by 0.1% during October. At the same time, the Bank of England said just 102,000 mortgages were approved for house purchase during September, the lowest level since July 2005.
Nationwide played down the apparent strength of its figures, saying the increase in annual house price inflation was unlikely to mark the start of a new upward trend.
