New figures show house price rise

In news which may signal a boost for the mortgage market, new figures have contradicted the idea that house prices are now falling.

Figures from Nationwide Building Society for October indicate that this month has seen the joint strongest monthly house price rise this year, at 1.1 per cent, a figure matched only by June.

The October inflation rate is also an increase on September''s 0.7 per cent, with the annual house price inflation rate up from nine per cent to 9.7 per cent.

It made the annual house price £186,044, compared with £184,723 last month.

Nationwide''s figures come in contrast with those of property website Hometrack, which stated earlier this week that house prices had fallen by 0.1 per cent this month.

Fionnuala Earley, Nationwide''s chief economist, admitted the figures were "surprisingly strong", although she doubted whether it would mark an immediate upturn in the market.

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