House prices up again in November

House prices are "still refusing to cool", having increased by 1.4 per cent in November, the latest Nationwide house price index reveals.

The momentum of growth has increased since last month, as in October the monthly rise in prices was 0.8 per cent.

Average prices stood at £172,185 in November, compared to £169,623 the previous month. The annual rate of increase was 9.6 per cent, a significant rise from the eight per cent measured in October.

Fionnuala Earley, Nationwide’s group economist, noted that this is the highest annual rate of growth since February 2005 and means that house prices are £15,046 higher than a year ago.

"The second half of 2006 has so far seen average monthly increases of 1.1 per cent, almost double the 0.6 per cent in the first half of the year and much higher than the average 0.2 per cent per month in 2005," Ms Earley continued.

"Looking forward, current housing market indicators are firm and do nothing to dent the prospect of further rises in house prices in the very short term."

On the interest rate issue, Ms Earley said that, while there are "upside risks", another rise is fairly unlikely. Nationwide believes that interest rates are likely to have hit their peak at five per cent.