UK house increases up 3.9% in a year, says 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.

 

It said the annual pace of change had been "broadly consistent" with wage growth.

But it warned house building needed to keep pace with increased demand.

Various surveys have suggested that house prices continue to rise, primarily as a result of a lack of properties going onto the market but also owing to a shortage of new homes being built.

On Wednesday, the Land Registry said that the typical house price in London in September was very close to £500,000.