The latest Halifax National House Price Index for October shows that house prices rose by 1.7%, with the average price now £184,593.
* House prices rose by 1.7% in October. There have, however, been indications of a weakening in activity at earlier stages of the house-buying process, suggesting that house price inflation may slow in the coming months.
* The latest RICS survey shows signs of a slowdown in activity with virtually no change in sales between 2006 Q2 and 2006 Q3 whilst growth in new buyer enquiries slowed sharply in September compared to the previous month. The House Builders' Federation has also reported an annual fall in the numbers looking at new homes for the third time in four months.
* The annual rate of house price inflation increased to 8.6% from 8.0% in September, partly because the monthly rise in October 2005 was low (0.3%).
* Sound economic fundamentals and a lower stock of properties available on the market have put upward pressure on house prices. The UK economy continued to grow at slightly above its long-term average pace of 0.6% per quarter in 2006 Quarter 3 with gross domestic product (GDP) increasing by an estimated 0.7% for the fourth successive quarter.
* Significantly higher utility bills and the increase in mortgage rates over recent months are expected to constrain housing demand, causing the annual rate of house price inflation to ease over the coming months.
Commenting, Martin Ellis, Halifax Chief Economist, said: "House prices increased by 1.7% in October. There have, however, been indications of a weakening in activity at earlier stages of the house-buying process, suggesting that house price inflation may soon begin to slow. Significantly higher utility bills and the increase in mortgage rates over recent months - both in fixed and variable rate products - are expected to constrain housing demand, causing the annual rate of house price inflation to ease over the coming months."
