House prices rise 0.6% in October
House prices in the UK rose by 0.6% in October, but they are still nearly 1% lower than a year ago.
Figures released from Nationwide found that the price of a typical UK home is now £164,153. The building society says there has not been a strong trend of house prices moving in either direction over the past six months.
"The market is being skewed by low transaction levels," says market analyst at quickmovenow.com Donna Houquez. She adds that there is every chance prices will continue to fall in 2013.
"It is going to take the gap between real income and house prices to reduce in order for the recent economic growth we have seen to translate into an upturn in the housing market," she comments.
Unrealistic selling prices
Houguez adds that the big deposits needed by first-time buyers and unrealistic selling prices are the two key factors holding the property market back.
Despite an increase in house prices in October, Ashley Alexander, director of estate agent review website meetmyagent.co.uk, says the annual fall of 0.9% gives a better insight into the state of the market.
However, he insists it is not necessarily bad news, saying: "2012 will be viewed as a welcome stabilising of the housing market after a turbulent few years."
This article was written for our sister website Money Observer
Everything you own: all your assets (property, cars, investments, savings, insurance payouts, artwork, furniture etc) minus any liabilities (debts, current bills, payments still owed on assets like cars and houses, credit card balances and other outstanding loans). When you’re alive this is called your wealth; when you’re dead, it becomes your estate.
This is a mutual organisation owned by its members and not by shareholders. These societies offer a range of financial services but have historically concentrated on taking deposits from savers and lending the money to borrowers as mortgages, hence the name. In the mid-1990s many societies “demutualised” and became banks. One academic study (Heffernan, 2003) found demutualised societies’ pricing on deposits and mortgages was more favourable to shareholders than to customers, with the remaining mutual building societies offering consistently better rates. In 1900, there were 2,286 building societies in the UK; in 2011, there are just 51.