UK property prices set to continue rising

UK-based property investors could be interested to hear that real estate values in the country are likely to continue to rise over the course of 2010.

The latest indices, published by Nationwide, shows that property prices experienced a one per cent growth last month, with low levels of stock and high levels of demand fuelling the rise.

However, Nationwide predicted that the price growth was likely to stabilise in the coming months as more properties entered the market.

"Given the very strong performance of house prices from May 2009 onwards it will take monthly increases in excess of one per cent for the annual rate of inflation to be maintained in double digits," explained Martin Gahbauer, chief economist at Nationwide.

Meanwhile, the Centre for Economics and Business Research (CEBR) has claimed that prices are set to grow a further five per cent over the course of the year.

According to the CEBR, a combination of low mortgage rates and shortage of new developments will contribute to the price growth.

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