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 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, 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