October property price increase
- 1st November 2007
- Selling Property News
Property prices in the UK are still rising according to figures just released by Nationwide.
The figures reveal that average property prices were up 1.1% during October, the second largest rise month-on-month increase during 2007.
Some investors might like to believe that this is an indication that the property market has turned the corner and can look forward to further growth; this is not necessarily the case.
Finnuala Earley, Nationwide’s chief economist believes: “While some may be tempted to interpret October’s numbers as a sign house prices are immune to deteriorating affordability and tightening credit conditions, such a conclusion would be misguided.”
Nationwide points out that a number of factors support this statement: the lowest levels of new buyer enquiries for a number of years, a fall in mortgage lending along with a tightening of lending criteria in the mortgage market and fewer properties coming onto the market.
However, Simon Rubinsohn from RICS, concludes that: “The endless talk of the demise of the property market is, at the very least, a little premature. The 1.1% gain in prices in October represents the highest month-on-month increase this year and provides a stark contrast to the fears of outright price declines.”
The 1.1% gain in prices in October...provides a stark contrast to the fears of outright price declines.
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