Thursday, April 29, 2010
Double-digit house price inflation
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

Annual house price inflation has risen to 10.5% this month, according to the Nationwide Building Society, following a 1% April rise. This is the first time that house-price inflation has been in double figures since June 2007 and represents a remarkable turnaround. The 12-month rate of price rises, up from 9%, was helped by the fact that April 2009 saw a 0.3% monthly fall. Even so, prices are up by 11.6% from their February 2009 low point, though still 10% below the October 2007 peak.

The Nationwide does not think double-digit house price inflation will be maintained for long, given that it would require monthly prices rises to be as big this year as last, and neither do I. More here.