According to Nationwide Building Society it could Well be good news for small businesses and sole-traders in the property industry.
Nationwide believes that house prices are likely to see an increase of 10% per year. The latest survey suggests that on average Uk house prices increased by 2.6% in January, which pushed the annual rate up to 8.6%. This makes the average cost of a UK home £163,481.
According to the building society, house prices have been rising for over 9 successive months – the fastest rate of increase since October 2007.
Despite this welcome news, Martin Gahbauer, Nationwide’s Chief Economist, commented that there is a risk that annual house price inflation is highly likely to move into double-digits in February for the first time since May 2007.
Mr Gahbauer added that the consistent rise in house prices was surprising considering the UK has been in the worst recession since the 1920s.
In addition to this, the Bank of England and the British Bankers Association reported further rises in the amount of mortgages being approved, which is a good short-term indicator of market future-trends.