Double digit rise in house prices

The annual rate of house price inflation has moved into double digits for the first time since June 2007, according to the mortgage lender Nationwide.

Seasonally adjusted house prices increased by 1.0% month-on-month in April making house prices on average 10.5% dearer than a year ago.

“April’s figures show the first double-digit annual growth in UK house prices since June 2007,” said Martin Gahbauer, Nationwide’s chief economist.

The unadjusted average house price in April was £167,802 against £164,519 in March and £151,861 in April 2009 giving rises of 2.0% and 10.5% respectively.

“Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward. The smoother three month on three month rate of inflation edged down further from 1.5% in March to 1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices,” according to Gahbauer.

www.nationwide.co.uk/hpi/historical/Apr_2010.pdf