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House prices start year with rise | House prices start year with rise |
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House prices rose by 1.2% in January compared with the previous month, according to the latest survey from the Nationwide Building Society. | House prices rose by 1.2% in January compared with the previous month, according to the latest survey from the Nationwide Building Society. |
The lift at the start of 2010 pushed up the annual increase in prices by 8.6%. | The lift at the start of 2010 pushed up the annual increase in prices by 8.6%. |
The Nationwide's chief economist, Martin Gahbauer, predicted that year-on-year prices would move above 10% in February. | The Nationwide's chief economist, Martin Gahbauer, predicted that year-on-year prices would move above 10% in February. |
The average UK home costs £163,481, following the ninth monthly property price rise in a row. | The average UK home costs £163,481, following the ninth monthly property price rise in a row. |
The three-month on three-month rate, regarded as a less volatile measure of house prices, saw prices rise by 2.1% in January, down slightly from 2.3% in December. | The three-month on three-month rate, regarded as a less volatile measure of house prices, saw prices rise by 2.1% in January, down slightly from 2.3% in December. |
Economic news | Economic news |
Mr Gahbauer told the BBC the rise was "surprising given the UK economy has been in the deepest recession since the 1920s". | |
He added that people were not putting their property on the market because low interest rates were acting as a disincentive. | |
"People may have a need to move house but may be on a mortgage that has a very low rate of interest, say 2.5% for some standard variable rate deals." | |
He said that could rise if a new mortgage was taken out for a home move. | |
Housing affordability has been affected by the fact that wages have not increased, and in some cases have fallen. | |
Yet pay restraint has prevented more people losing their jobs and, in turn, having to sell their homes. | |
The lack of supply in the housing market is one of the reasons why prices have continued to rise. | The lack of supply in the housing market is one of the reasons why prices have continued to rise. |