View more on these topics

House price rises to continue but at lower annual rate

House prices have resumed strong growth after a temporary cooling over the summer with a downturn looking unlikely, according to Nationwide.

In its monthly house price index, the building society says the market saw prices rise by an average of 1.4 per cent in October and 24 per cent over the year. The average price of a home is now £113,665.

Nationwide does, however, predict that house prices will not increase at the same rate over the coming year. But it believes there will be strong growth despite the risk of unemployment because interest rate rises are unlikely.

The society says the South-east trailed behind the rest of the country with weaker price rises than elsewhere. It attributes this to high-profile job losses in financial services which it says are indirectly affecting consumer confidence. It says stockmarket falls are likely to be behind prices levelling off in the most expensive parts of London.

It says first-time buyers being priced out of the market is contributing to a tailing off in the South-east.

Nationwide group economist Alex Bannister says: “The rise in prices in October was undeniably robust – the annualised rate of growth was over 18 per cent – but it was the lowest month-on-month change since March.

“Between April and August, there had also been a reduction in the number of house purchase loans, suggesting activity in the market is also beginning to cool. However, September saw the number of loans for house purchase rebound and, with households remaining highly confident about the outlook for their finances, a sharp slowdown remains unlikely in the near term.”

Recommended

FSA ready to look at target-related fee deals

Fund firms could be allowed to offer performance-related fees after the FSA admitted there is a greater case for them than ever before.At the Investment Management conference in London this week, FSA head of collective investment schemes Kevin Tomlin said the regulator was looking at more flexible pricing, including performance-based fees.Currently, investors can only access […]

SVT NAV beats world index fall

The Scottish Value Trust has announced its year net asset value fell by 5.9 per cent compared to the FTSE World Index which fell 24.7 per cent. It says it has a gearing ratio of 20 per cent and hedge funds now make up 28 per cent of the trust. It will pay out an […]

EIS brings sci-fi comic to life

2000 AD Films is an enterprise investment scheme that aims to translate characters from the sci-fi comic 2000 AD to the cinema screen.This EIS aims to raise between £250,000 and £2.5m to help finance a film which will follow in the footsteps of the 1995 production Judge Dredd which starred Sylvester Stallone. The company believes […]

More firms offer PHI cover to all employees

More companies are offering private health insurance to all employees in a bid to beat NHS waiting lists and get people back to work, according to benefits consultant Towers Perrin.The company says this is a key finding from its sec-ond corporate healthcare survey of 120 top UK companies, representing more than two million employees.An increasing […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment

    Close

    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm

    Email: customerservices@moneymarketing.com