House prices rose in October but buyers have been warned that this is not a sign the market will not slow.

According to the Nationwide house price report, prices increased by 1.1 per cent over the month, bringing the average price of a home in the UK to £186,044 , up from £184,723 in September and £169,623 in October 2006.

However, Nationwide''s chief economist Fionnuala Earley, pointed out that "most leading indicators of housing market activity are continuing to weaken".

"Surveyors are reporting the weakest levels of new buyer inquiries in many years and mortgage approvals are falling from recent highs amid weaker demand and tighter lending criteria for riskier borrowers," she said, adding that this may not "have an immediate impact if homeowners are in no rush to sell".

Simon Rubinsohn, the chief economist at the Royal Institution of Chartered Surveyors, was more optimistic, suggesting that the price increase "provides a stark contrast to the fears of outright price declines".

"We still expect the pace of house price inflation to gradually slacken as the credit crunch restricts the availability of mortgage finance… and the economy more generally slows."

He added that the organisation did not expect the Bank of England to cut interest rates in the near future.