House prices still rise despite 'slow' month

House prices continued to increase throughout October, albeit at a slower rate than the previous month, new figures have shown.

Last month saw prices rise by 0.4 per cent to an average of £162,038, according to building society Nationwide.

This represents a slower growth than the 0.9 per cent recorded in September.

However, despite this, the figures still showed a six-month continual increase and the first positive annual house price inflation since March 2008.

Simon Rubinsohn, chief economist at the Royal Institute of Chartered Surveyors said the figures were good news as house prices are now only 13 per cent less than they were during the peak in the autumn of 2007.

He said: "The latest gain in house prices caps a generally good news week for the housing market, with transaction levels continuing to recover according to the Land Registry and net mortgage lending rising a little further."

However, Mr Rubinsohn warned that any growth could be negated in the coming months if the "holiday" on stamp duty comes to an end.

"A key issue for the market going forward is how it copes with the planned ending of the stamp duty holiday on properties valued at £175,000 or less," he said.

"This is likely to be less of a problem in London and the south-east but elsewhere, it could have more of an impact."

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