News: Nationwide Reveals 'Surprise' Rise In House Prices

Thu, 02 Apr 09

House prices have risen for the first time since October 2007 but are still 15.7% down over the year, according to latest figures from the Nationwide.

During March property prices rose by 0.9% compared with February, which puts the average UK home at £150,946.

Although the annual rate of decline is 15.7%, this is less than February’s rate of  17.6%.

Nationwide admits this minor surge in prices is a “surprise” but says that further monthly rises are needed before it can say the market is improving. Fionnuala Earley, Nationwide's chief economist, said: “While the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached.”

She added that any benefit of the Bank of England’s recent move to pump money into the economy, known as quantitative easing, will take time to work through the housing market.  

By Joe Lepper

See also  - Mortgages, House Price Indices Asking Price Index, House Prices and Trends

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