House price growth edges higher in October, says Nationwide

According to mortgage lender Nationwide, house prices rose 0.6% month-on-month in October compared with a 0.5% increase in the previous month and analysts’ expectations for an unchanged reading.

On a year-on-year basis, house prices rose 3.9% compared with a 3.8% gain in September and forecast for a 3.8% hike.

"The housing market should be able to cope with higher interest rates in the year ahead, provided the increase is modest and the economy and the labour market remain in good shape," said Robert Gardner, an economist at Nationwide.

The report added house prices have grown at annual pace of between 3% and 4% over the last five months and analysts expected the trend to continue.

"We expect house prices to see solid increases over the coming months amid relatively decent activity and a shortage of properties," said Howard Archer, economist at IHS Global Insight.