RICS: Nationwide October house price figures

Commenting on Nationwide house price figures, Simon Rubinsohn, RICS chief economist said: "The endless talk of the demise of the property market is, at the very least, a little premature. The 1.1% gain in prices in October represents the highest month-on-month increase this year and provides a stark contrast to the fears of outright price declines. One reason why the housing market is still proving resilient is the evident lack of supply. Although the latest RICS survey show new buyer enquiries falling sharply, it also points to a more stable pattern in the sales to stock ratio. This provides the clearest guide to the overall demand/supply balance for property and historically has been the best lead indicator of future developments in the housing market.

"We still expect the pace of house price inflation to gradually slacken as the credit crunch restricts the availability of mortgage finance, particularly to 'higher- risk' borrowers and the economy more generally slows. But today's data strengthens our conviction that the authorities will not be in a rush to follow the US Federal Reserve in lowering interest rates."