House prices rise 10.5% annually
UK house prices posted double-digit growth during 2006, according to a report by the Nationwide building society.
Prices rose 1.2% in December taking the annual rise to 10.5%.
It rose three-and-a-half-times faster in 2006 than the previous year, with the typical house increasing in value by £45 per day - bringing the average house price to £173,746.
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Nationwide forecasted that prices will increase by 5-8% next year mainly because of the dearth of sellers coming to the market.
"Evidence from estate agents continues to show that supply conditions are tight with fewer sellers coming to market," said Nationwide economist Fionnuala Earley.
"We expect worsening affordability and recent interest rate hikes to affect the levels of activity in the market," she added.
