UK house prices on the rise

Nationwide, the country’s second largest mortgage lender, has confirmed that UK house prices have picked up strongly.

12:31 02 December 2013

Nationwide, UK’s second largest mortgage lender, has released figures saying that the UK house prices continue to rise. Based on their report, UK house prices have increased at 6.5per cent a year. This is up from 5.8per cent last month. It added that the average price of a house or flat in the UK is £174,566. This is the highest number in this industry since April 2008.

Howard Archer, the chief UK economist with IHS Global Insight, said: "House prices... look set to see further strong increases over the coming months despite the Bank of England ending Funding for Lending support for mortgage lending." He added that he is sticking to his forecast that house prices will increase by 8per cent next year.

However, some economists believe that Bank of England’s move to stop Funding for Lending for household mortgages will stop the trend. Come January, FLS will only be used for business lending.