<< Most Recent Articles

House price growth rises to double digits

The average homeowner saw the value of their property rise by £45 a day in 2006, the latest figures show.

As the year ends, Nationwide has confirmed that house price inflation has confounded their initial expectations, with annual house price growth rising to double figures.

After prices rose by 1.2 per cent in December, annual growth finished the year at 10.5 per cent, with prices rising three and a half times faster than last year.

Nationwide group economist Fionnuala Earley said: "Both housing market and weather forecasters were surprised by the warm climate this year."

Despite most forecasters expecting a tepid market in 2006, supply constraints and a strong economy bolstered prices, with momentum expected to continue into 2007.

However, Ms Earley said: "There are still few signs that the rate of house price growth will moderate in the very short term. Evidence from estate agents continues to show that supply conditions are tight with fewer sellers coming to market.

"We expect worsening affordability and recent interest rate hikes to affect the levels of activity in the market in the coming months.

"This will feed into a slower rate of house price growth in the second half of next year."

The average UK home is now valued at £173,746, according to Nationwide.

For moving costs, click here to see how much you could borrow with Lombard Direct.

28/12/2006 10:59:38

Most Recent Articles