Nationwide points to 5% increase in house prices

According to Nationwide Building Society house prices will rise by as much as five per cent over the coming year.

This is a great reduction on the increases witnessed in recent years - but still represents above inflation growth.

The comments from the building society seem to scotch rumours of an impending market crash.

Nationwide's chief executive of, Philip Williamson, told the Guardian: "In terms of house price inflation, we think it will be relatively subdued - almost treading water . . . There may be some single-digit growth - 0 per cent to five per cent would be our best estimate."

To read more about UK property, click here.
© DeHavilland Information Services plc