This report gives a summary into the current housing market conditions during October looking at both Rightmove and Nationwide figures.

Based on year-on-year price growth, Rightmove saw an increase of 2.8% in property prices in October 2009 against October 2008, which was the largest recorded this year and the highest in the past 6 years. The increase is still largely down to the lack of properties on the market which has led to suggestions that we are now in a sellers market where demand is outstripping supply.

The Nationwide price index has reported another price rise in October (sixth consecutive) up by 0.4% compared to September this year. Overall this gives over a 7% increase from the lowest point back in February 2009. Nationwide recorded an average price of a property was 2% higher than this time last year with an average property in the UK now worth £162,038, showing for the first time since March 2008 that house price inflation is now in the positive.

Both reports show a further increase in consumer confidence, with Rightmove suggesting that the reason for this is a shortage of properties on the market which is driving up prices, the result of an increase in price index. Rightmove explain that the average number of properties on the market is down 39.1% compared to October 2007.

The figures reported by both Rightmove and Nationwide are encouraging showing that the market is heading in the right direction. This is also evident here at Severn Trent Searches, where incoming orders of searches in October for residential properties was higher than this time last year.