House prices are set to rise by seven per cent this year despite signs that the economy may be slowing, it emerged today.
Figures from the Nationwide Building Society showed average prices rose by 0.8 per cent during May, compared to a 0.3 per cent fall in May last year - suggesting the housing market was strong enough to weather any economic slow-down.
Annual house price inflation rose to 7.7 per cent from 6.6 per cent last month, and the Nationwide said lower mortgage rates should continue to boost house buyers' confidence.
The average price of a house is now £87,267, a 50 per cent increase from the £58,196 average at the last General Election.
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