British house prices jumps 0.4% in October

British house prices climbed 0.4 per cent in October, reporting the first annual increase in the past 19 months.

Lender Nationwide said Friday that house prices in Britain gained 2 per cent in October as compared with the same period of 2008. The average value of a British house climbed to £162,038 during October.

But, the increase was less-than-expected on the monthly basis. Housing market had reported an increase of 0.9 per cent in September and 1.4 per cent in August.

Nationwide said that slowdown in the monthly growth signaled that more properties would come to the market.

British house prices have been soaring for the last few months owing to shortage of property on sale and low interest rates.

Though the property market is improving, yet the property prices are much below their peak in 2007.

Soaring rate of unemployment may also hinder further increase in the property prices.