The housing market continued to grow in September, according to the latest figures released today.

A survey, from the Nationwide building society, shows that prices rose by 2.8 per cent in September, the highest monthly increase since June 1993. Prices are 14.6 per cent higher than 12 months ago. The rises left the average price of a house at £92,432, with prices up by more than 83 per cent since the beginning of 1993.

However, Nationwide believes it is too early to predict what impact the terrorist attacks of September 11 will have on the property market.

Forum Response: National Housing Federation

James Tickell, deputy chief executive of the National Housing Federation told ePolitix.com: "Rising house prices may be good news for well-off home owners. But for young people starting their careers, teachers, nurses and a host of vital workers, high prices put home ownership into an unachievable dream.

"For example, in 29 of the London Boroughs, and much of the South East, to buy the cheapest house needs a household income of £40k - way above the average.

"Whether or not there is a slowdown in the market, there is already a crisis of affordability in much of England."

National Association of Estate Agents

A spokesman for the National Association of Estate Agents told ePolitix.com that the figures do not reflect the terrorist activity in the United States, but added: "We are confident that the market will prove resilient and will not be as badly affected as other sectors such as tourism and airlines. The housing market came through previous military operations, indeed, they had little or no effect.

"We have the lowest interest rates for 40 years and although we believe any slowdown will be gradual, we do not anticipate a dramatic slump. We are certainly not part of the doom and gloom brigade."