House prices in the U.K. show no signs of slowing down and are predicted to rise up to 6 percent over the next 12 months, according to Nationwide data and economists.
U.K. house prices grew 4.5 percent in December from the same period last year, according to the building society’s latest monthly house price index, picking up pace from a 3.7 percent annual gain seen in November. It marked the largest monthly increase since April. In December, the average U.K. house price was £196,999 ($292,048), according to the same survey.
In London, house price growth increased to a rate of 12.2 percent in the fourth quarter of 2015, Nationwide said, continuing a trend of rapid growth in the capital.
Looking into next year, robust growth in the U.K.’s property market shows no signs of abating despite the prospect of the Bank of England raising interest rates.
Nationwide expects U.K. house prices to rise by 3 to 6 percent over the next twelve months but said there were risks that could increase prices further, reducing affordability for many struggling to get on the housing ladder.