Nationwide: House prices accelerate at year end

House prices across the country have accelerated by an average of 3.3 per cent, according to new research from Nationwide.

Leading the growth was Northern Ireland, where house prices rose 12 per cent from October to December of last year, putting annual inflation up to 44.1 per cent.

Also experiencing high levels of growth was the north of England, which had the second highest quarterly price growth at 4.7 per cent, ahead of London, where prices rose at the third fastest level (4.1 per cent).

Nationwide's quarterly regional review finds the average price of a home in UK was £172,065 in the last quarter of 2006, ranging from £269,327 in London to £128,510 in the north of England, the most expensive and cheapest places to buy in the country.

"Across the UK, Northern Ireland's housing market stands out. . . this is the highest ever rate recorded in Northern Ireland and means that prices rose by a massive £152 per day, almost four times as much as the £39 per day in England," said Fionnuala Earley, Nationwide group economist.

"It also means that the average house price in Northern Ireland (£181,031) is now higher than the UK average (£172,065) for the first time since quarter four of 1980."

The second fastest annual growth in house prices was experienced in Scotland, which was up 16 per cent in the 12 months since the last quarter of 2005.

Ms Earley noted that despite the high levels of annual house price inflation in Scotland, which has stayed at around ten per cent most of the last four years, it remains the second cheapest place to buy a home in the UK, after the north of England.