House prices increase again in September


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House prices in the UK have increased in September despite the recent problems in the credit market, according to new research.

The study by Nationwide building society revealed that the cost of buying a home rose by 0.7 per cent from August, while the average price of a UK property has also increased to £184,723.

Discussing the findings, the society's chief economist Fionnuala Earley said the research suggested mainstream mortgage and loan borrowers may end up benefiting from the current market conditions.

He explained: "The likelihood is now that we will see a cut in base rates early in 2008, which is good news for mainstream borrowers and those coming off fixed rate deals."

The latest findings on mortgage lending and house purchases have been released around a week after research by GE Money Home Lending claimed those buying new properties should expect to spend £11,000 in their first year of home ownership.

GE is one of the UK's major loan providers in the UK.

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