House price growth 'stays strong'

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Annual house price inflation across the UK has risen to almost 10%, according to the Nationwide Building Society.

Between January and March prices rose by 2.2%, with all parts of the UK registering house price growth.

The typical home cost £175,554 at the end of the first quarter, the building society's quarterly survey added.

Northern Ireland is experiencing astounding growth, with prices up 57.6% year-on-year, the biggest annual rise the Nationwide has ever recorded.

Experts suggest that the peace dividend is a key reason for such startling growth in house prices in Northern Ireland.

London was also singled out as an area of exceptionally high price growth.

A typical house in the capital costs £280,995, up 14.3% over the past year.

'Mixed picture'

"Prices increased in every part of the UK in the last 12 months, but the rate at which they rose was quite different across the country," Fionnuala Earley, chief economist at Nationwide, said.

"Northern Ireland and London stand out as the leaders with the fastest annual rates of house price growth in the UK.

"In contrast, the Northern and North West regions and Wales saw the biggest slowdown in the annual rate of house price growth," Ms Earley added.

Last week, Nationwide said that recent rises in UK interest rates were having a cooling effect on the market.

The building society said prices rose by 0.4% during the month of March.

On Thursday, the Bank of England will announce whether UK interest rates will move from their current level of 5.25%.

A majority of analysts expect the Bank to keep rates on hold, but others speculate that there might be a one quarter of a percentage point increase.