Price increase surprises industry

The property industry has been shocked by the news that house prices rose by 1.1 per cent between September and October.

Figures from Nationwide put the average property price at £186,044, a rise of £1,321 on the £184,723 figure recorded in September.

Annual growth also picked up after falling to just nine per cent last month and was recorded at 9.7 per cent in October.

"House prices recorded a surprisingly strong increase of 1.1 per cent in October, tying it with June for the highest month-on-month growth rate so far in 2007," said Fionnuala Earley from Nationwide.

"The average price of a typical UK property was £186,044 in October, £16,421 more than the same month last year," she added.

Ms Earley went on to point out that buy-to-let investors have the opportunity to see good returns in the coming years.

"The government's latest projections show that the 15-34 year old population will be increasing until the middle of the next decade, and this should be supportive of both tenant demand and rents," she continued.

"Even with only modest house price inflation, these conditions would produce relatively healthy returns over a ten-15 year horizon," added Ms Earley.

Your Move reported this month that house price growth reached 1.2 per cent between September and October.

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