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House prices have risen for six months in a row according to the Nationwide and are now higher than they were a year ago. 

Average prices rose by 0.4 per cent in October, less than the 0.9 per cent gain seen in September, but enough to more than reverse the falls seen since September 2008.  Annual house price inflation, says the Nationwide, is now 2.0 per cent, the first time since March 2008 that the annual rate of change has been in positive territory positive.

The news comes almost exactly a month after GSPC revealed that prices in the west of Scotland were higher than a year ago.  That report was later confirmed by the Bank of Scotland which released data showing the market in Scotland had recovered earlier and more strongly than elsewhere in the UK.

Nevertheless, prices remain below their peak.  In the west of Scotland, GSPC calculates that prices are now around seven per cent below their peak at the end of 2007.  That, however, is almost half the 13.1 per cent figure from the Nationwide for the UK as a whole.

Moreover, the Nationwide forecasts that prices rises in the future will be muted.  Martin Gahbauer, Nationwide's Chief Economist, said: "A moderation in the rate of house price inflation was to be expected, as the very strong monthly increases seen over the summer months were unlikely to be sustainable over the long run".  He points out that consumer expectations of house price inflation, a good indicator of short term trends in prices, are now consistent with stable to slightly positive house price inflation in the near term.
 
Ccommenting on the Nationwide report, Simon Rubinsohn, RICS chief economist said: "The latest gain in house prices caps a generally good news week for the housing market with transaction levels continuing to recover according to the Land Registry and net mortgage lending rising a little further.