Thursday, August 31, 2006
House prices rise at fastest rate in a year
U.K. house-price inflation accelerated to the fastest pace in a year in August, the Nationwide Building Society said. The average cost of a home rose 6.6 percent from a year earlier to £167,721 , the biggest increase since April 2005. Home values accelerated even after the Bank of England raised its benchmark interest rate for the first time in two years on Aug. 3. The central bank is counting on house prices to support a pickup in consumer spending this year.