Making the average price of a UK home rise to £173,746

House prices scored their first double-digit gains for almost two years in December 2006, according to a recent survey from the Nationwide building society. Prices rose 1.2 per cent compared with November, taking annual house price inflation to 10.5 per cent, the fastest pace since February 2005.

The rise brings the average price of a UK home to £173,746, up from November's £172,185.

The Nationwide survey showed that the price of a typical house increased by the equivalent of £45 per day in 2006 - three-and-a-half times faster than the £12.50 per day in 2005.

This year, the building society expects the rate of house price growth to remain robust but the pace of growth will slow to between 5 per cent and 8 per cent.

The Nationwide believes that interest rates have peaked at the current rate of 5 per cent, but cautioned that the strengthening housing market was identified as an upside risk in the set of minutes from the Monetary Policy Committee.

Your home may be repossessed if you do not keep up repayments on your mortgage.
Article date: 12.06