Nationwide reports that annual house price growth has remained firm in October.
* House prices up by 0.7% in October
* Typical house price £12,500 higher than this time last year
* Annual returns on equities outperforming house prices
* House price expectations moderating
Commenting on the figures Fionnuala Earley, Nationwide's Group Economist, said: "Following a sharp increase during September, the monthly rate of growth of house prices cooled in October. House prices increased by 0.7% during the month, just over half the rate of the 1.3% increase seen in September. However, the underlying trend in house prices is still firm. While the annual rate of growth moderated from 8.2% to 8% in October, the three-monthly growth rate increased to 2.6%. This is its fastest pace since September 2004 and brings the price of a typical house in the UK up to £169,623 - more than £12,500 higher than at this time last year. Recent housing market indicators have been firm, and the latest approvals data from the Bank of England show that the August rise in interest rates did nothing to curb demand. The number of house purchase approvals increased to 126,000 in September, the highest rate of monthly activity since February 2004 when house prices were increasing at an annual rate of 17.1%. However, September also saw a big fall in the balance of estate agents reporting an increase in new buyer enquiries and net sales. While the relationship between these and house purchase approvals is far from perfect, it could suggest that we will see some slowing in approvals in the next few months."
