House prices may not have leaped in the past month but the average for the nation did increase slightly by 0.6 per cent on October.  That left a gain of 0.2 per cent when compared to last month’s decline of 0.4 per cent.  The data released by Nationwide revealed that the average house price is now £164,153 when reflecting the increase recorded in October.

The housing market growth is detrimental to the overall UK economy.  Experts believe that growth in the housing market will continue to struggle to find footing through the end of the year and then on into the next year.  Problems of struggling economies in the US and the eurozone are all contributing to the slow growth of the economy in the UK.  That lack of growth causes a weak confidence in the housing market and those that could buy are holding back until things stabilize more.

Robert Gardner, chief economist at Nationwide, remarked, “The annual pace of change continues to display a picture of relative stability, with house prices down just 0.9 per cent compared to October 2011.

“This maintains the pattern that has been evident since late 2010, with annual price growth remaining in a narrow band between +1.5 per cent and -1.5 per cent on all but two occasions over the past two years.

“Indeed, UK economic output is still slightly below the level prevailing twelve months ago and more than three percentage points below its 2008 level.

“Therefore, while the data on economic growth suggests that the UK economy has not been performing quite as poorly as feared, there is little doubt that it remains extremely fragile.

“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.”