House price rise 1.1% in June

Posted: 28 Jun 2007 11:12:11 GMT

House prices have risen by 1.1 per cent over the last month, the latest figures from Nationwide have revealed.

House prices have risen by 1.1 per cent over the last month, the latest figures from Nationwide have revealed.

According to the Nationwide Monthly House Price Index, the monthly increase is the largest this year, and brings the annual rate of inflation to 11.1 per cent - the highest level since January.

Fionnuala Earley, the building society's chief economist also added that the rate of house price inflation is double that seen a year ago.

"The price of a typical house is now £184,070, more than £18,000 higher than this time last year, which is the equivalent of a rise of more than £50 per day," she said.

Although the increasing value of their properties will be good news for homeowners, the figures will further pressurise the Bank of England, which seems likely to decide to raise interest rates by a further 0.25 per cent next week.

"While we expected interest rates to increase to 5.75 per cent in August, this news, together with the revelation that rates remained on hold by only the narrowest of margins in June, will set the stage for that rate rise to move forward to July and for the risk of a rise to 6 per cent to increase significantly," Ms Earley added.

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