House prices rise unexpectedly in September

10-Oct-2006

House prices rose at an unexpectedly strong rate in September, potentially making the market more difficult for first time buyers.

According to data released by Nationwide, house price inflation grew to an annual rate of 8.2 per cent in September; first time buyers now face an average house price of £169,413.

September's figures represent an increased of 1.3 per cent from the previous month.

"Just like the weather, the housing market was unseasonably warm in September as August's interest rate hike did nothing to cool the rate of house price inflation," said Fionnuala Earley, an economist for the Nationwide Group.

"Buyer interest remains robust as estate agents continue to report strong enquiries," Ms Earley added.

Buy-to-let demand continues to support current market conditions, with landlords still intending to expand their property portfolio, according to Nationwide.

Nationwide offers a range of fixed-rate and variable mortgages for first and second time buyers.

First time buyers dismayed by another increase in property prices should seek out those companies setting up to help them find bargains.

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