Date issued: 26 Apr 2007
PICK UP IN HOUSE PRICE GROWTH SEALS A MAY RATE RISE
- Pace of house price growth picks up in April, but trend still shows a gradual cooling
- Market demand has been supported by movers, but this too is beginning to wane
- Too rapid an increase in rates could destabilise the market
- Current economic conditions suggest that a house price crash is unlikely
| Headlines
|
April 2007 |
March 2007 |
|
Monthly index * Q1 '93 = 100
|
357.6 |
354.5 |
|
Monthly change* |
0.9% |
0.5% |
|
Annual change |
10.2% |
9.3% |
|
Average price |
£180,314 |
£177,083 |
* seasonally adjusted
Commenting on the figures Fionnuala Earley, Nationwide's Chief Economist, said:
“The Bank of England held off raising rates at the beginning of April, but the acceleration in house prices during the month makes a rate rise on the MPC’s 10th anniversary look like a certainty. The pace of house price growth almost doubled during April to 0.9%, up from 0.5% in March. This brings the annual rate of inflation back into double digits at 10.2% and the price of a typical house up to £180,314, which is £16,741 higher than at this time last year.
For further information please see this month's full report (PDF - 53KB)
