House price growth slows in October

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UK house prices continued to grow in October, with the value of residential properties increasing by 0.1 per cent compared to the previous month, according to government figures published today (December 10th).

However, the monthly figures, which are based on completed house sales and, as a result, published later than many others, revealed a fall in prices in various sectors of the housing market.

The average price of a flat fell by 0.7 per cent, while a landlord looking to purchase a terraced residential letting would have paid, on average, 0.4 per cent less than the month before.

While the statistics also showed an increase in house price inflation, from 10.8 per cent in September to 11.3 per cent, a property expert claimed that the overall figures were further proof of a market slowdown.

"'The Department of Communities and Local Government data do not significantly undermine the belief that housing market activity and prices are now cooling markedly in the face of tighter lending practices and stretched affordability pressures," said Howard Archer at Global Insight.

Last week, sector experts Property For Life claimed that strong rental yields in 2008 would continue to ensure investment in residential lettings represents an attractive prospect, regardless of property prices.

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