UK house prices 'continue to soar'

Posted: 13 Oct 2006 10:14:51 GMT

House prices across the UK rose significantly during the third quarter of the year, indicating a continued strengthening of the market.

House prices across the UK rose during the third quarter of the year, new figures reveal.

According to lender Nationwide, annual house price inflation rose to 6.9 per cent over the quarter, the fastest rate of annual growth since the first quarter of 2005, and the quarterly growth rate increased to 2.1 per cent.

The average home in Britain now costs £168,460, up from £157,627 during the same quarter last year.

House prices in London rose by 2.5 per cent during the three months from July to September to an average of £259,646, with price gains highest in inner west London.

The Quarterly Regional Review shows that property prices in Northern Ireland leapt over the past quarter by a whopping 8.7 per cent, while prices in Scotland soared by 4.7 per cent over the three months to £135,846 and 15.2 per cent over the year.

Nationwide claims that the latest figures are evidence that Britain's property market is still booming, with Scotland, Northern Ireland and London leading the way.

Fionnuala Earley, Nationwide group economist, said: "House prices increased in every region of the UK over the last twelve months, supported by robust economic conditions and high levels of immigration across all parts of the UK."

However, house prices in the north of England dipped by 0.5 per cent over the quarter and just 0.8 per cent over the year to September.

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