House prices up 1.1%, claims Nationwide

House prices bounced back from a period of decline during October, according to new research.

Contrary to recent findings from Hometrack and Halifax, data from Nationwide showed that house prices rose 1.1 per cent during the month.

This pushed the annual rate of house price inflation to 9.7 per cent - a 0.5 per cent rise from September.

However, despite what appear to be shoots of recovery, Fionnuala Earley, chief economist at Nationwide, warned against complacency on the grounds that the impact of the worldwide credit crunch is yet to be fully felt.

"While some may be tempted to interpret October's numbers as a sign that house prices are immune to deteriorating affordability and tightening credit conditions, such a conclusion would be misguided.

"Most leading indicators of housing market activity are continuing to weaken."

Figures released by Hometrack showed house prices were down 0.1 per cent during October.