House prices show annual rise

UK house prices are now higher than they were a year ago, according to a new survey.

The Nationwide Building Society figures for October revealed that there was a monthly rise in the average home value of 0.4 per cent.

While this was a smaller climb than the 0.9 per cent increase seen the previous month, it means that the average UK house price - now £162,038 - is two per cent higher than it was 12 months ago.

Such a situation may indicate that the market is continuing to recover, which could help stimulate more housing construction.

Nationwide chief economist Martin Gahbauer said recent news that Britain is still in recession may not be all bad for the market, as it ensures that interest rates will remain very low.

The data follows figures from the Land Registry earlier this week showing that there was a 0.9 per cent rise in the average house price in England and Wales in September.