As expected, the average house price in the UK has recovered from the recent low seen during the month of August. In the end of the summer month, there was a two year low of 3.2%, but a bounce back was expected. It happened. According to Nationwide, property prices increased by 0.6% in October to an average of £196,807.

Demand from hopeful home buyers continues to rise. There are warnings of continued average house price increases while there are also warnings of interest rate increases in 2016. With low supply of new properties coming to the market, the combination is causing those that want to climb onto the property ladder to register with agents, to seek information online, to shop for a mortgage, to apply for loans, and buy a home. The activities for all of those parts of the housing market are showing increases of activity.

Robert Gardner, Nationwide’s chief economist, said, “Over the past five months, annual price growth has remained in a fairly narrow range between 3% and 4%, broadly consistent with earnings growth over the longer term. While this bodes well for a sustainable increase in housing market activity, much will depend on whether building activity can keep pace with increasing demand.”

Some economists also see the strong earnings growth in the UK, increased consumer confidence, and low unemployment rates as a factor in the demand from home buyers.

Some of the same factors are influencing the demand from home buyers as they too are showing an increase demand for remortgage lending. The ability to save money with a low interest rate fixed deal is too hard to pass up by those wanting to avoid the interest rate increases so many are warning about.