29
Jan
House Prices Start 2010 with a Rise
House prices rose by 1.2% in January compared with the previous
month, according to the latest survey from the Nationwide Building
Society.
The lift at the start of 2010 pushed up the annual increase in
prices by 8.6%.
The Nationwide's chief economist, Martin Gahbauer, predicted
that year-on-year prices would move above 10% in February.
The average UK home costs £163,481, following the ninth
monthly property price rise in a row.
The three-month on three-month rate, regarded as a less volatile
measure of house prices, saw prices rise by 2.1% in January, down
slightly from 2.3% in December.
Economic news
Mr Gahbauer said that figures which showed the UK economy had
crept out of recession meant that UK house prices had "gone some
way beyond the recovery in the overall economy".
Housing affordability had been affected by the fact that wages
had not increased, and in some cases had fallen.
Yet pay restraint had prevented more people losing their jobs
and, in turn, having to sell their homes.
The lack of supply in the housing market is one of the reasons
why prices have continued to rise.