House prices rise at fastest rate since election in September as London growth hits 10.6%
House prices rose at their fatest rate since the general election in September, pushing annual growth to 3.8%.
Prices shot up 0.5% in the last 30 days, putting the average cost of a home at £195,585, according to Nationwide's latest House price Index.
Nationwide's chief economist Robert Gardner said the figure "provides some encouragement that the pace of house price increases may be stabilising close to the pace of earnings growth."
"However, the risk remains that construction activity will lag behind strengthening demand, putting upward pressure on house prices and eventually reducing affordability," he added.
London continued to outpace the rest of the country, with annual price growth accelerating to 10.6% in the third quarter of the year.
In fact, the gap between prices in the capital and the rest of the UK have hit a record level, the data shows.
Prices in London average £443,399, while in the North of England a home typically costs £124,345.
Analysts said the growing gap could force more buyers to give up on the idea living in and around London and consider moving to more affordable cities.
