House prices rise again: Nationwide
UK house prices rose by 3.9% in October compared with 2014, according to Nationwide.
Property values were up by 0.6% compared with September, the building society said, putting the cost of the average home at £196,807, in the first estimate of property prices for the month.
Robert Gardner, Nationwide chief economist, said that economic conditions had aided affordability levels despite record average prices.
‘Historically low interest rates have helped to offset the negative impact of rising house prices on affordability. Indeed, even though house prices are at an all-time high, the cost of servicing a typical mortgage is still close to the long-term average as a share of take home pay,’ he says.
For first-time buyers, Nationwide’s figures show that mortgage payments make up just under 35% of take-home pay, markedly less than the 52% reached in 2007.