House prices rose by a further 0.4% in December, according to the latest House Price Index released by Nationwide. Year-on-year house price inflation is up from 2.7% in November to 5.9% in December. The average house price for December 2009 is now £162,103.
Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "House prices rose by a further 0.4% in December, continuing the recent trend of moderate month-on-month increases. The 3 month on 3 month rate of change - a smoother indicator of the near term price trend - dropped from 2.8% in November to 2.1% in December, as house price increases toward the end of the year moderated in comparison to those seen in the summer.
"At £162,103, the average price of a typical UK property has ended the year 5.9% higher than at the end of 2008. Few could have foreseen this development at the start of the year, when the near term price trend was still pointing to a repeat of the double digit annual decline experienced in 2008. Although house prices are still 12.2% lower than their October 2007 cyclical peak, they have now rebounded by an impressive 8.9% since their February 2009 trough."
