House prices in the UK rose by close to 10 per cent in the year to February, the Nationwide House Price Index has found.
Figures from the building society’s latest research show that prices rose by 0.6 per cent month on month and by 9.4 per cent in the year to February 2014, reflecting the fastest rate of growth for almost four years.
The average price of property in the UK now stands at £177,846.
Jeremy Duncombe, director at Legal & General Mortgage Club comments emphasised that rising house prices are putting homeownership out of the reach of many people.
“The lack of supply in these areas is pushing up prices at a rate that is not sustainable whilst prices in the rest of the UK have risen at a much slower rate,” he added.
“ What we are seeing therefore is a two-speed housing market. In order to control this, the Government needs to continue stimulus in the right areas without sparking a bubble in London and simultaneously preventing other parts of the country falling too far behind; a tough balancing act.”
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