UK house prices set to beat growth expectations

UK mortgage lender Nationwide has said that house prices may beat growth expectations for the year ahead.

Their expectations were made after their monthly property market review said that average house prices grew by 1.6 per cent in February compared to the previous month, and by 14 per cent on the year.

The survey also revealed that the average UK house now costs £94,965, and that these latest figures suggest that the UK residential property market, which has soared by an estimated 75 per cent during the past ten years, shows no sign of flattening

These robust figures emerged despite a year of below-trend economic growth and widespread uncertainty over prospects for 2002.

Nationwide attributed the resilience of the property market to historically low jobless rates and cheap borrowing costs.


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