House prices rise 5.8 per cent in one year
New figures show that house prices have risen by 5.8 per cent over the course of the year - the fastest rate seen in three years.
According to independent.co.uk, figures from Nationwide revealed that property prices increased by one per cent during October; which is the biggest rise since July. The building society also confirmed the rise marks the sixth month in a row that prices have increased.
Properties in London and the South East have been behind the drive; bringing the average house price to £173,678, reports sky.com.
Robert Gardener, chief economist at Nationwide, said one of the main reasons why house prices have increased so dramatically is because demand is well ahead of supply.
"The ability and willingness of potential buyers to transact has been steadily increasing," he commented. "The ability to buy has been supported by continued gains in employment and policy measures such as the Help to Buy and Funding for Lending schemes, which have improved the availability and lowered the cost of credit."
He added that mortgage rates remain at a near all-time low; which has also encouraged more people to buy.
There is concern that if house prices continue to rise, the UK could be at risk of experiencing a housing bubble but prices are still seven per cent behind the all-time-high experienced in 2007.