BRITISH house prices rose for an eighth consecutive month in December to end the year nearly 6 per cent higher than they started it, mortgage lender Nationwide said on Thursday. However, the monthly rise of 0.4 per cent was the smallest since April and the lender cautioned that the outlook for this year remained uncertain.
Martin Gahbauer, Nationwide’s chief economist, said a moderation in the quarter-on-quarter rate – a smoother indicator of the near-term price trend – suggested the pace of price rises was slowing. ‘House price increases towards the end of the year moderated in comparison to those seen in the summer.’
But he admitted that this year’s recovery in the property market, fuelled by record-low interest rates and tight supply, had taken most forecasters by surprise.
At £162,103 (S$368,233), the value of the average British property remains 12.2 per cent below its cyclical peak in October 2007 but has rebounded by 8.9 per cent since February. December’s annual rise of 5.9 per cent was the highest since November 2007, according to the Nationwide index.
Source: Business Times, 2 Jan 2010
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