House prices pick-up says Nationwide
House prices rose in October, at their fastest rate in over a year, in a further sign the British housing market is stabilising.
Nationwide said house prices rose 1.3% last month, while the annual rate of inflation rose for the first time this year to 3.3% following the Bank of England's interest rate cut.
This brings the average price of a home to £157,107 in October from £156,517 in September.
Nationwide however remains hesitant about whether today's report demonstrates a real turnaround for the British housing market after this year's slowdown.
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"House prices rebounded in October, more than reversing the falls seen in August and September. The questions for the market now are whether we are at a turning point and whether we should expect to see house prices beginning to pick up after the steady slowdown during 2005," said group economist at Nationwide Fionnuala Earley.
Today's figures may also increase expectations that the BoE will now keep interest rates on hold at 4.5% for the short term.
Recent data by the BoE indicated that the housing slowdown had reached a turning point with a report out Monday showing that mortgage approvals rose to their highest level in over a year in September. The report also showed mortgage lending growth rose.
