United Kingdom: Home prices rise in October
November 1, 2012
In October, prices for a typical house in the U.K. rose a seasonally adjusted 0.6% over the previous month, according to data published by the Nationwide Building Society (NBS). The figure contrasted the 0.4% contraction observed in September and overshot market expectations that had prices gaining only 0.1%. The NBS noted that currently there is no established trend and highlighted that the economic recovery remains fragile, "with households and the public sector focused on repairing their finances rather than spending". In addition, the NBS stated "policy measures such as the Bank of England's Funding for Lending Scheme, which is helping to keep down mortgage rates, should provide support for mortgage lending. Nevertheless, housing market conditions are likely to remain fairly subdued until there is a sustained improvement in the wider economic environment". Compared to the same month last year, home prices decreased 0.9%, which marked an improvement over the 1.4% decline seen in September.