29 Apr

House price inflation 'hits double digits'

House price inflation 'hits double digits'

The rate at which house prices are increasing in the UK has reached double digits, a firm has claimed.

According to Nationwide, the annual rate of inflation in April hit 10.5 per cent.

Currently, residences are said to be worth around £167,802, which is a rise on the £164,519 recorded in March.

This represented a monthly gain of around one per cent, the lender noted.

Responding to the findings, chief economist at Nationwide Martin Gahbauer said: "Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of one per cent for the annual rate of inflation to be maintained."

He added that one of the factors contributing to the increases in values is the shortage of properties on the market.

In a recent bid to boost the sector, the government raised the stamp duty threshold for first-time buyers to £250,000.

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