House Prices Begin Year on a Positive Note

According to the Nationwide Building Society, the rate of house price increases could soon hit 10% after another rise in January.

A survey has shown that the average UK house price rose by 1.2% in January, which has driven the annual rate up to 8.6%.  This increase now means that the average UK home is worth £163,481.

Also, a Land Registry survey has said that the annual change in property prices has shown an increase for the first time since May 2008.  This came after figures showed the year-on-year December rise was 2.5%, this was the eighth consecutive monthly rise.

Consecutive rises

The Nationwide has also said that prices are now growing at their fastest rate since 2007, and also that they have consecutively risen for 9 months now.

"House prices strengthened their upward momentum at the start of 2010, increasing by a seasonally adjusted 1.2% month-on-month in January," said Martin Gahbauer, the Nationwide's chief economist.

"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," he added.

Regarded to be a less volatile measure on house prices, the three-month on three-month rate showed a slight decrease in January.  The rate was recorded at 2.1%, down from 2.3% in December.  

Posted at 09:00AM Jan 30, 2010 by Kris Wigfield in Mortgages & Housing Market  |  Comments[0]