RICS: Nationwide October house price data

Commenting on the Nationwide house price data: "The Nationwide house price index has  risen for seven consecutive months and now stands just 12.5% away from its October 2007 high. A key driver of the rebound in prices has been the lack of new instructions coming onto the market. However, there are now a few signs that this is changing with the latest RICS Housing Market showing a little more property being registered with estate agents. The modest increase in supply could help to explain why there has been some slackening in the pace of price gains over the past few months. Nevertheless, the imbalance between buyer interest and the available stock of property is still sufficiently large to point to further price increases into the new year.

"The housing market will face a number of challenges in 2010 including the imminent removal of the extended zero rate band of stamp duty and the prospect, at some point, of an increase in base rates from the current emergency level which has helped to keep the cost of mortgage finance so low for many homeowners. Arguably, it would however be even more of concern if house prices were to continue moving smartly ahead through the coming year. Accessibility is already a major issue with most traditional metrics of value highlighting the difficulty new entrants to the market have in taking a first step on to the property ladder."