House price inflation is back on an upward path because of dwindling stocks of properties and a strong surge in buyer interest.

Property website Rightmove.co.uk said asking prices lifted 3.3 per cent in October - the largest rise in 18 months - as more properties came off the market than on to it.

The monthly growth pushed the annual rate of price inflation to 9.8 per cent from 9.1 per cent, the first rise in ten months.

Miles Shipside, commercial director of Rightmove, said: "Many first-time buyers and investors are back looking for properties, particularly at the cheaper end of the market."

Monday October 20, 2003