UK house prices rose in October at their fastest annual rate since July, according to a HBOS Halifax survey, suggesting the prospect of higher borrowing costs has done little to dampen the property market.
Halifax said this morning house prices rose 1.7 per cent in October, their sharpest monthly increase in six months, after September's upwardly-revised gain of 1.2 per cent.
That left prices 8.6 per cent higher in the three months to October compared with a year ago - the fastest rate of increase in three months - up from an 8 per cent annual rise in September.
However, Halifax said the annual figure was flattered by a weak increase in October 2005. The data had little impact on financial markets which are bracing for the Bank of England to raise borrowing costs to 5 per cent when its monthly meeting ends at 12pm.
Halifax chief economist Martin Ellis said a shortage of properties and a robust economy had helped to boost house prices but the rising cost burden on consumers may cool the property market going forward.
The nation's largest mortgage lender said the cost of an average home rose to £184,593 sterling in October.