House price inflation picks up in October
House price growth picked up even faster last month, although signs are now beginning to emerge that inflation may weaken in the coming months.
Halifax, the mortgage lending arm of HBOS, said house prices rose by 1.7% in October, taking the annual rate of inflation to 8.6%. However this compares with a very weak reading of 0.3% last 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," said Halifax.
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Chief economist Martin Ellis said, 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."
Halifax noted a recent RICS survey that showed completed sales have been broadly flat over the past six months with virtually no change in sales between the second and third quarter.
