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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 compared with a year earlier, the Nationwide said in the first estimate of property prices for the month. 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 has been "broadly consistent" with wage growth. It said the annual pace of change had been "broadly consistent" with wage growth.
But it warned that building needed to keep pace with increased demand. 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.
However, Robert Gardner, Nationwide's chief economist, said that economic conditions had aided affordability levels. 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." "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.