House prices rally in June, says Nationwide
UK house prices rose much more than expected in June sending the annual rate to its highest in over two years, according to a report from the Nationwide building society.
The monthly increase of 1.1% was far more than the anticipated 0.4% increase and more than double the 0.5% rise announced in May.
It appears from the data that the four interest rate hikes since last August have done little to dampen house price inflation, said dealers, increasing the change of an increase next week.
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Traders suggest rates may rise to 6% by the end of the year and possibly higher still, a view not objected to by Nationwide chief economist Fionnuala Earley.
"The resilience of the housing market will be another component to add to the rate rise camp's argument," said Earley.
The price of the average house is now more than £184,000, having risen around £50 a day since this time last year, said Nationwide.
