The latest Nationwide House Price Index shows that UK house prices increased by 1% in October, house prices are now only around 7% below 2007 peak.
The 5.8% increase from October 2012 shows year-on-year trends are also increasing with September having seen a 5% year-on-year increase.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “The ability and willingness of potential buyers to transact has been steadily increasing.
“The ability to buy has been supported by continued gains in employment and policy measures such as the Help to Buy and Funding for Lending schemes which have improved the availability and lowered the cost of credit.”
Andy Knee, Chief Executive of LMS, said: “High rents and low returns on savings are continuing to draw people’s attention towards property, not only as somewhere to live but also as a means on investment.
“However, it is important to recognise the pressure that this increased demand is putting on the country’s limited supply of houses.
“Mortgage rates have never been so low, so if you were flirting with the idea of getting a mortgage there has never been a better time. If you are able to source the cash for a deposit and have found the property that you want, then snap it up before someone else does.”
