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UK house prices up 3.9% in a year, says Nationwide | UK house prices up 3.9% in a year, says Nationwide |
(about 3 hours later) | |
UK house prices rose by 3.9% in October from a year earlier, the Nationwide has said in the first estimate of property prices for the month. | |
Property values were up by 0.6% compared with September, the building society said, putting the cost of the average home at £196,807. | Property values were up by 0.6% compared with September, the building society said, putting the cost of the average home at £196,807. |
It said the annual pace of change had been "broadly consistent" with wage growth. | |
But it warned house building needed to keep pace with increased demand. | |
Various surveys have suggested that house prices continue to rise, primarily as a result of a lack of properties going onto the market but also owing to a shortage of new homes being built. | Various surveys have suggested that house prices continue to rise, primarily as a result of a lack of properties going onto the market but also owing to a shortage of new homes being built. |
On Wednesday, the Land Registry said that the typical house price in London in September was very close to £500,000. | On Wednesday, the Land Registry said that the typical house price in London in September was very close to £500,000. |
Analysis: Kamal Ahmed, BBC business editor | |
The Prime Minister said he wanted a "national crusade to get homes built". | |
The first set of significant house building figures since then have just been published. | |
They are from the National House Building Council - which provides building certificates for new homes. | |
And they make for pretty gloomy reading. | |
Read more from Kamal | |
Interest rate effect | |
Robert Gardner, Nationwide's chief economist, said that economic conditions had aided affordability levels. | |
"Historically low interest rates have helped to offset the negative impact of rising house prices on affordability," he said. | "Historically low interest rates have helped to offset the negative impact of rising house prices on affordability," he said. |
"Indeed, even though house prices are at an all-time high, the cost of servicing a typical mortgage is still close to the long-term average as a share of take-home pay." | |
The number of mortgages approved for house purchases dropped slightly in September, according to figures from the Bank of England. | |
The total fell from 70,664 in August to 68,874 in September, but this was higher than the average of the previous six months of 66,900. |