House prices rise in April

11.06.2007

Government data released today showed a surprise increase in house price inflation in April, with London still the country's hot spot.

House prices jumped 11.3% year on year versus a 10.9% improvement in March, according to the Department for Communities and Local Government.

Dealers explained that the latest data tends to lag other market surveys, which have indicated a cooling in prices over recent months.

London is still buoyant though, rising 14% year on year in April, helping the average price of a property in the UK jump to £209,454.

Last week, the Bank of England held UK interest rates at 5.50%, having raised them four times since August 2006, although economists expect another quarter point rise soon.

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