Monthly Index:
- Oct-11: 330.9
- Sep-11: 329.5
Monthly Change:
- Oct-11: 0.4%
- Sep-11:0.1%
Annual Change:
- Oct-11: 0.8%
- Sep-11:-0.3%
Average Price (not seasonally adjusted):
- Oct-11: £165,650
- Sep-11:£166,256
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, said:
"UK house prices increased by 0.4% in October, lifting annual house price growth into positive territory for the first time in six months. The price of a typical home was 0.8% higher than October 2010.
"Given the challenging economic backdrop, October's data is encouraging, but it doesn't fundamentally change the picture of a housing market that is treading water. Property transaction levels remain subdued, and prices essentially flat compared to last year.
"The outlook remains uncertain, but with the UK economic recovery expected to remain sluggish, house price growth is likely to remain soft in the period ahead, with prices moving sideways or drifting modestly lower over the next twelve months."
Nicholas Ayre, director of the property buying agency Home Fusion, commented:
“It says much about how bad things have got for such a relatively small uptick to seem like good news. The housing market is hanging on for dear life. It has been drifting listlessly for months, but now at least it is showing a flicker of hope.
“Average prices have finally recovered to where they were at this time last year. But that can’t mask the fact that the number of sales is still paltry and the market is essentially stagnant.
“Demand is weak and in many areas, so too is supply – as sellers hold off trying to sell in such an obviously lousy climate.
“Good properties, especially in hotspots like central London, are flying off the shelves.
“But in most parts of the country, agents are struggling to shift homes as the few buyers there are hold out for a further price drop.
“If unemployment continues to rise, then we could see more properties come onto the market as people are forced to sell. This could provide further downward pressure on prices.
“The property market feels a little surreal at present, but while noone will be popping champagne corks today, these latest figures hint that there is still life in the old dog yet.”
Tracy Kellett, managing director of UK buying agent, BDI Home Finders, said:
"Prices are up but then with so few transactions there will always be volatility and price exaggeration. One lender in a one month period does not a market make.
"Treading water is a better reflection of where the market is at, albeit with a pocket full of stones.
"Unsurprisingly, there is more activity at the higher end of the market and less at the lower end. Confidence and the availability of mortgages will doubtless be playing a role in this. The market is increasingly becoming one of the Haves and the Have Nots.
"Over the course of the next year we're likely to see a significant widening of the North/South divide due to the greater exposure of the North to the deterioration of the economy.
"The South, too, is likely to see a sharp slowdown in transactions as the economy enters a big freeze. Buyers will be even more cautious next year than this, while vendors will not sell unless they really have to.
"The lack of recreational home-moving means 2012 will almost certainly be another year of stagnation.
"Entrenched buyer caution means all but the best properties will command lower prices in 2012 than 2011. Financing, especially at higher LTVs, will continue to be difficult to secure, which will see buyers demand to pay even less.
"Low interest rates will at least prevent a major surge of distressed sellers so a crash is unlikely.
"Central London is likely to remain stable next year, with potentially a small rise. This will be purely due to demand from overseas investors who continue to see London as a safe haven."
