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| House price growth 'strengthens' | |
| (10 minutes later) | |
| House price growth picked up again in April, the latest figures from Nationwide building society show. | House price growth picked up again in April, the latest figures from Nationwide building society show. |
| Prices rose 0.9% compared with 0.5% in March, taking the annual rate of price inflation to 10.2% - with the average price of a UK home rising to £180,314. | Prices rose 0.9% compared with 0.5% in March, taking the annual rate of price inflation to 10.2% - with the average price of a UK home rising to £180,314. |
| But, Nationwide added that over the longer term, house price growth is beginning to cool. | |
| Prices increased by 2% between February and April - the lowest three-monthly growth rate since last August. | Prices increased by 2% between February and April - the lowest three-monthly growth rate since last August. |
| "While the monthly rise in prices is stronger than the [Bank of England] would have liked to see, it can take some comfort from the fact that the underlying trend is softening," said Nationwide chief economist Fionnuala Earley. | |
| Rates warning | |
| The latest increase in house prices is likely to increase the pressure on the Bank to raise interest rates, which are widely expected to go up by one quarter of a percentage point to 5.5% in May. | |
| Yet Nationwide cautioned against pushing rates up to 6% and beyond, as it fears this could destabilise the property market. | |
| "Too sharp a rate hike could undermine market confidence and dry demand up swiftly," Ms Earley warned. | |
| She explained that previous price increases had been supported by resilient demand, but signs are emerging that this is beginning to wane. | |
| First time buyer numbers fell by 3,200 between December and February, compared with the same period last year, Nationwide said. | |
| But affordability did not only affect first time buyers, mover numbers also slipped - 2,500 fewer people moved in February compared with the previous month. |