19 October 2010

According to recent figures* the average property price in October rose to £236,849. This is a rise of more than £7,000, from the £229,767 figure seen in September. The 3.1% rise is the highest seen October rise since 2003 - and follows house price falls in each of the three previous months.

Although the rise indicates a positive strength to the market, the high levels of available stock and ever decreasing mortgage availability look set to drive house prices down in the coming months.

Miles Shipside, Rightmove director, commented: "Between 2007 and 2009, October sellers tried higher prices in spite of the 'credit crunched' housing market, and it's a habit that is proving hard to kick in the 'spending review' market of 2010." Mr Shipside went on to say that the "rollercoaster" market has taken another unexpected twist.

Howard Archer, IHS Global Insight chief UK and European economist said that the 3.1% rise was "incredibly optimistic" and was "completely at odds" with certain individuals who had previously claimed that the housing market was set for a double dip.





*Figures from Rightmove

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