House prices see fastest rise in 18 months

House prices rose at their fastest rate for 18 months in October after a steep drop during the previous month, figures showed today.

The average cost of a home rose by 1.8% in October, partially offsetting September's record fall of 3.7%, according to Halifax.



But despite the increase, the group warned that the underlying trend for house prices was still downwards.







Property transactions are running at around half their normal level, and this has increased the volatility in monthly house price changes, contributing to the mixture of price rises and falls seen in 2010.



But the quarter-on-quarter change, generally seen as a smoother indicator of market trends, showed an acceleration in the rate at which property prices are dropping.



Homes lost 1.2% of their value during the three months to the end of October, the biggest quarterly decline since June 2009, although he group pointed out that the slide was well down on quarterly falls of 5% and 6% in the second half of 2008.



Martin Ellis, Halifax housing economist, said: "An increase in the number of properties available for sale in recent months, together with a decline in demand, has put some downward pressure on prices.



"We do not believe that prices are set to fall sharply over a sustained period. Interest rates are likely to remain very low for an extended period, which will continue to support the improved mortgage affordability position for homeowners."



The average home now costs £164,919, 6.6% above the trough reached in April 2009.



House prices during the three months to the end of October were 1.2% higher than they were in the same period a year earlier, although the annual rate of growth declined for the fifth consecutive month.



But property values have fallen by 2.3% since the start of 2010, and look set to end the year in negative territory if current trends continue.



Howard Archer, chief UK and European economist at IHS Global Insight, said: "Does the 1.8% rebound in house prices in October reported by the Halifax significantly change our view that house prices are likely to soften by around 10% by the end of 2011? In a word, no.



"Latest housing market data and surveys have been consistently weak, and the housing market really does not seem to have got much going for it at the moment."

Discover more property articles at Homes and Property
Property search
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
SPONSORED FEATURES
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Recruitment Genius: Solar PV Designer

£25000 - £35000 per annum: Recruitment Genius: An exciting opportunity to join...

Recruitment Genius: Telesales Executive - OTE £26,000

£14000 - £26000 per annum: Recruitment Genius: Due to continued success, this ...

Recruitment Genius: Trainee Design Consultant - Kitchens & Interiors

£12000 - £14000 per annum: Recruitment Genius: This bespoke furniture and inte...

Recruitment Genius: Solar PV Surveyor

£25000 - £35000 per annum: Recruitment Genius: An exciting opportunity to join...

Day In a Page

A Very British Coup, part two: New novel in pipeline as Jeremy Corbyn's rise inspires sequel

A Very British Coup, part two

New novel in pipeline as Jeremy Corbyn's rise inspires sequel
Philae lander data show comets could have brought 'building blocks of life' to Earth

Philae lander data show comets could have brought 'building blocks of life' to Earth

Icy dust layer holds organic compounds similar to those found in living organisms
What turns someone into a conspiracy theorist? Study to look at why some are more 'receptive' to such theories

What turns someone into a conspiracy theorist?

Study to look at why some are more 'receptive' to such theories
Chinese web dissenters using coded language to dodge censorship filters and vent frustration at government

Are you a 50-center?

Decoding the Chinese web dissenters
The Beatles film Help, released 50 years ago, signalled the birth of the 'metrosexual' man

Help signalled birth of 'metrosexual' man

The Beatles' moptop haircuts and dandified fashion introduced a new style for the modern Englishman, says Martin King
Hollywood's new diet: Has LA stolen New York's crown as the ultimate foodie trend-setter?

Hollywood's new diet trends

Has LA stolen New York's crown as the ultimate foodie trend-setter?
6 best recipe files

6 best recipe files

Get organised like a Bake Off champion and put all your show-stopping recipes in one place
Ashes 2015: Steven Finn goes from being unselectable to simply unplayable

Finn goes from being unselectable to simply unplayable

Middlesex bowler claims Ashes hat-trick of Clarke, Voges and Marsh
Mullah Omar, creator of the Taliban, is dead... for the fourth time

Mullah Omar, creator of the Taliban, is dead... again

I was once told that intelligence services declare their enemies dead to provoke them into popping up their heads and revealing their location, says Robert Fisk
Margaret Attwood on climate change: 'Time is running out for our fragile, Goldilocks planet'

Margaret Atwood on climate change

The author looks back on what she wrote about oil in 2009, and reflects on how the conversation has changed in a mere six years
New Dr Seuss manuscript discovered: What Pet Should I Get? goes on sale this week

New Dr Seuss manuscript discovered

What Pet Should I Get? goes on sale this week
Oculus Rift and the lonely cartoon hedgehog who could become the first ever virtual reality movie star

The cartoon hedgehog leading the way into a whole new reality

Virtual reality is the 'next chapter' of entertainment. Tim Walker gives it a try
Ants have unique ability to switch between individual and collective action, says study

Secrets of ants' teamwork revealed

The insects have an almost unique ability to switch between individual and collective action
Donovan interview: The singer is releasing a greatest hits album to mark his 50th year in folk

Donovan marks his 50th year in folk

The singer tells Nick Duerden about receiving death threats, why the world is 'mentally ill', and how he can write a song about anything, from ecology to crumpets
Let's Race simulator: Ultra-realistic technology recreates thrill of the Formula One circuit

Simulator recreates thrill of F1 circuit

Rory Buckeridge gets behind the wheel and explains how it works