House prices continue to rise
House prices continued to accelerate in November, according to the latest official survey, shrugging off the interest rate rise earlier in the month.
Building society Nationwide said house prices rose 1.4% on the month, taking the annual pace of house price inflation to 9.6% from 8% in October. That is the highest level since February 2005.
Based on today's survey, the average home in Britain now costs £172,185 and is said to be rising at around £41 a day.
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The rise comes despite the Bank of England lifting interest rates to 5.00% earlier this month, which comes on top of Augusts' rate rise.
The reason for the continuing boom in prices is lack of supply, says Nationwide. The supply of homes is now at a two year low despite a firm market.
Nationwide also reiterated its previous guidance in June, when it estimated a "modest level" of overvaluation.
