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Average house prices rise by 0.5%

The average UK house price increased by 0.5 per cent to £135,100 in October from £134,400 in September, according to the monthly Hometrack national housing survey.

Despite continued growth in property prices, the survey, based on information gathered from its housing and estate agency databases, reveals a continuing trend of weakening inflation from an annual high of 2.6 per cent in May to 0.6 per cent in September and 0.5 per cent in October. But with the exception of Central London and East London and Wiltshire, Hometrack says prices have continued to rise in all counties.

It says many counties away from the expensive South-east and Home Counties regions continued to experience the strongest increases. Teesside tops the growth table for the second month, where house price inflation of 1.5 per cent saw the average house price rose to £67,500 from £66,500 in September.

This contrasts with Central London and the City of London which saw a fall of 0.2 per cent to £440,500 from £441,381 while there was no change in East London, where the average value remains at £172,200.

Hometrack housing economist John Wriglesworth says: “While the housing market is slowing down to more sustainable rates of inflation, prices are still rising by over three times the average rate of retail price inflation.

“I am confident that there will be no 1990s-style housing recession.

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