Has the credit crunch failed to slow growth

According to the Nationwide the credit crunch has not stopped the growth in house prices.

 Nationwide’s figures showed an increase of 0.7% in September, October was 0.6%. Annual growth is now 9% to September down from 9.6% its lowest in almost a year.

 Nationwide’s chief economist Fionnuala Earley said that the credit crunch could trigger the “cooling of activity among stretched borrowers” that many analysts have been predicting.

The building society added that most of the slowdown in annual price inflation was down to the effect of recent Bank of England interest rate hikes.