Property prices increase further

House prices continued to rise throughout the month of November, a new study has shown.

The average price of a UK property now stands at £162,764, a similar level to that seen in early 2006, according to the Nationwide report.

This figure represents the second consecutive monthly rise of 0.5 per cent and shows an annual increase of 2.7 per cent.

Martin Gahbauer, Nationwide's chief economist, said the figures showed that house prices were now increasing at a more moderate pace than in the spring and summer.

This could be attributed to a "better than expected" stabilisation of the labour market, he explained.

"Despite continued uncertainties about the future, the better than expected performance of the labour market has probably contributed to the surprise rebound in house prices this year," he said.

"Even though workers who have been forced from full-time employment into part-time work will have experienced a reduction in income, the impact has been less severe than it would have been if they had lost their jobs completely."

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