The average house now costs around £163,481
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House prices are set to soar as the housing market begins its recovery
Nationwide Building Society has said that the rate of house prices could soon rise above 10 per cent a year
Its latest survey shows that the average UK house price rose by 1.2 per cent in January, pushing the annual rate up to 8.6 per cent.
It means that the average UK home now costs around £163,481.
Martin Gahbauer, Nationwide’s chief economist, said the rebound in the housing market – and particularly house prices – has gone “some way beyond” the recovery in the overall economy.
He said: “This is a reversal of the picture in 2007-2008, when the housing market deteriorated much more quickly and at an earlier point in time than the wider economy.”
He added the future path of interest rates has become “even more critical” for the housing market due to the growing proportion of borrowers with variable rate deals.
The Land Registry survey, regarded as one of the most authoritative, puts the price of the average home in England and Wales at £161,783.
The Registry said that seven areas of England and Wales showed an annual increase in prices, led by London, which showed a 6.1% rise.
Recent figures from HM Revenue and Customs (HMRC) showed that the number of homes sold in December jumped to a two-year high of 104,000.
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