Figures released today show a jump in British house prices in September.
The Nationwide Building Society said the cost of an average home rose 1.3 per cent, bringing the annual rate of house price inflation to 8.2 per cent - its fastest rate of growth since February 2005.
Analysts said the figures suggested house prices still had further to rise and reinforced expectations the Bank of England might need to raise interest rates again this year from 4.75 per cent.
An average home cost £169,413 (€250,197) in September, almost £13,000 more than at the same time last year.
Nationwide noted a weak patch this time last year had boosted the annual comparison but pointed out the three-month on three-month series also showed a clear pick-up in house price inflation since July.
