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Homeowners strike gold in Jubilee year

House prices in the UK are 54 times higher than when the Queen came to the throne in 1952, according to Nationwide Building Society.

Its analysis of the housing market reveals that the average property price rose by 2.1 per cent to £102,086 in May from £100,726 the previous month.

Annual house price inflation increased to 17.9 per cent, the highest figure since 1989.

Nationwide says lending for house purchase and completions rose sharply in May. It expects the strong market to continue as record employment levels and low interest rates underpin consumer confidence.

Looking back over the past five decades, it shows that the average house price has increased from £1,890 at the start of 1952. For every day of the Queen&#39s reign, prices have risen by £5, roughly equivalent to £2,000 a year.

If prices had increased in line with the cost of living, the average house would now be worth just over £32,000, which Nationwide says demonstrates the payoff from property investment.

Since the Silver Jubilee in 1977, the average house price in London has risen by 10.1 per cent a year to £171,692 from £15,593. But in Scotland, the slowest growing area, the average price is up by 6.7 per cent a year to £69,591 from £13,674.

Group economist Alex Bannister says: “There has been no slackening in the demand for property in May. The housing market is almost certainly going through a period when households are adjusting to low inflation and low mortgage rates. Certainly, consumers appear willing to take on higher levels of mortgage debt even though their payments as a proportion of their pay will not erode as quickly as during the 1970s and 1980s.”

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