UK house prices rose by 0.4% m/m in October, according to the Nationwide index.

This represents a slowdown from the summer surge that saw prices increase by 6% between April and September. But the health of the market cannot be measured by values alone. Many fewer properties are being bought and sold than in “normal” market conditions. The first nine months of this year have registered just over half a million transactions, an annualised turnover rate of only 3.6% of the housing stock, well below the 20-year average of 8.5%. In September mortgage approvals for house purchase were 56K, up 68% on a year earlier, but still below the 10-year average of 100k. The housing market is recovering but still has some way to go.