House prices rose for the fifth straight month in U.K., as the gauge by Nationwide House Prices rose 0.9 percent in September, better than the expected 0.7 percent increase versus the revised 1.4 percent increase from last month. Annually, nationwide house prices remained unchanged for September, while expectations called for a 0.3 percent drop versus a 0.3 percent decline last month. The average cost of home has risen to 161,816 pounds. This data confirms the statement yesterday from the IMF, where they raised the U.K. outlook for 2010, as consumer confidence has improved along with increasing mortgage approvals. The IMF revised the U.K. growth in 2010 to 0.9 percent from 0.2 percent. However, this is still too early to call for a housing market recovery as we have seen negative forecasts from Ernst & Young as they call for a worsening housing slump in the U.K. for 2010. We will continue to see the Bank of England ease credit conditions, and to keep its benchmark rate at its low levels.
