House prices fell by 0.7% in October

The average price of a typical UK property edged down by a seasonally adjusted 0.7% month-on-month in October, according to the Nationwide House Price Index.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "The three month on three month rate of change - a smoother indicator of the recent price trend - fell to -1.5% in October from -1.0 % in September.  This is the largest decline over three months since April 2009, but is still well below the 5-6% rates of decline on the three month measure seen during the second half of 2008.  The annual rate of change - which compares the current level of house prices against their level twelve months ago - declined from +3.1% in September to +1.4% in October.  If the recent trend in house prices were to continue through November and December, the annual rate of house price inflation would drop to between 0% and -1% by the end of 2010. This would compare to a rate of +5.9% at the end of 2009."