House prices on course for 6% in '07 says Nationwide

Posted: 17 Nov 2006 10:36:53 GMT

Nationwide, the UK's biggest mortgage lender, has said that house prices will rise around five to six per cent over the course of 2007, and would finish this year up eight per cent

Nationwide, the UK's biggest mortgage lender, has said that house prices will rise around five to six per cent over the course of 2007, and would finish this year up eight per cent.

The lender's previous estimate of 2006 growth had predicted a maximum five per cent, and the one before that had expectations as low as zero to three per cent.

"We are still operating in a relatively low interest rate environment," said Philip Williamson. "Five per cent might be the top of the cycle."

The building society, announcing its financial results for the six months to September, said that its net mortgage lending was up by 50 per cent to £5.9 billion.

Gross mortgage lending was up 34 per cent on the same period of 2005, to £14.5 billion.

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