First-time Buyers
House prices continue to soar
House prices are increasing more than twice as fast as last year, according to Nationwide.
Research by the lender shows property prices are rising at the equivalent of £50 per day.
June saw a greater than anticipated rise of 1.1%, which brought house price inflation to its highest level since January 2005.
Fionnuala Earley, chief economist at Nationwide, said the unexpected size of this increase may lead to an interest rate rise that is both higher and earlier than expected.
She cautioned first-time buyers: “If you want to enter the housing market, the most important thing to think about is whether you can afford it, not only now but in the future.”
However, she also predicted that house price growth will eventually slow in 2007.
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