House prices increased by increased by 0.8 per cent in August, according to Nationwide.
The building society says that the annual rate of growth accelerated to 6.6 per cent but adds that the recent interest rate rise from 4.5 per cent to 4.75 per cent will signal caution but is unlikely to lead to a repeat of the 2004 slowdown in the market.
Nationwide’s group economist Fionnuala Earley, says: “The annual rate of house price inflation picked up for the third consecutive month in August. House prices are now 6.6 per cent higher than at this time last year. This is the fastest annual rate of growth since April 2005 and almost three times faster than at this time last year.
“The underlying market remains fairly firm with prices increasing by 0.8 per cent in August. The typical house in the UK now costs £167,721. This is £10,412 higher than August 2005 – the equivalent of a rise of almost £30 per day.”