Nationwide has revealed that property prices rose by 1.1 per cent in October – marking the biggest boost to housing value since June.

According to the lender, the annual rate of inflation also saw an increase, rising to 9.7 per cent – a 0.7 per cent rise on September.

Commenting on the house price figures, Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors, said: "The endless talk of the demise of the property market is, at the very least, a little premature.

"The 1.1 per cent 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. One reason why the housing market is still proving resilient is the evident lack of supply."

He added that the data "strengthens our conviction that the authorities will not be in a rush to follow the US Federal Reserve in lowering interest rates".

The figures put the average house price in the UK at £186,044.

© Adfero Ltd

Author:  Joanne McCabe

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