House prices rise by 1.2% at year's start
House prices rise by 1.2% at year's start
Friday 29th January 2010
The average UK house price rose by 1.2 per cent in January, boosting the annual rate of change to 8.6 per cent, new figures have revealed.Nationwide building society, who released the figures, said house prices could soon rise above ten per cent a year.
The increase this month marks the ninth rise in a row and provides further expectation of a revival in the housing market.
Commenting on the new figures, Nationwide's chief economist Martin Gahbauer said: "Unless there is a fall in property values in February, annual house price inflation is likely to move into double-digit territory next month for the first time since May 2007."
Mr Gahbauer admitted to the BBC that he was "surprised" at the increase in house prices given the precarious economic situation in the UK at the moment.
One of the reasons accounting for the rise is limited supply in the housing market as a result of the low interest rates.
The average house price now stands at £163,481.
Meanwhile, there were more houses sold in December than any other time in the last two years.
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