Annual House Price Growth Turns Positive

Nationwide House Price Index October 2009: Key Findings

Martin Gahbauer, Nationwide's Chief Economist, commented: "Over the first ten months of 2009, the seasonally adjusted index of house prices has risen by 4.6 per cent, though relative to the October 2007 peak it is still down by 13.1 per cent.

"A moderation in the rate of property price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run.

"Slower house price inflation is also consistent with developments in property market activity, as industry figures have shown that the pick-up in mortgage approvals for house purchases has lost some momentum in recent months.

"Although too early to tell for sure, it may also reflect a more natural level of stock available for sale coming to the housing market, alleviating some of the extreme shortages of property seen during most of this year."

Lender Support Required

Michael O'Flynn, Director at FindaProperty.com, says: "These latest figures show house prices rising for the sixth consecutive month and go further to support our own findings.

"But the really encouraging sign is the fact the market is back in positive annual growth for the first time since March 2008.

"The pace of recovery has slowed, however, suggesting that mortgage-dependent buyers are not going to be able to sustain the recovery and prop up the market.

"Lenders need to support the resurgence in prices by relaxing lending criteria and allowing more buyers the opportunity to enter the market and fulfil their home-owning aspirations."

Read the Nationwide House Price Index October 2009