MNI BRIEF: UK Average House Price At Record High

Monthly UK house prices increased at the fastest pace in April since February 2004, according to the Nationwide, with Chief Economist Robert Gardner saying the "extension of the stamp duty holiday in the Budget prompted a reacceleration in April." .

The monthly Nationwide house price index rose by 2.1%, while annual growth at 7.1% in April, which is only slightly below the peak of 7.3% seen in December, Gardner noted. The average house price rose to a new record high of GBP 238,831 in April and the report stated that "annual growth will reach double digits in June if prices are flat over next two months".

"Further ahead, the outlook for the market is far more uncertain. If unemployment rises sharply towards the end of the year as most analysts expect, there is scope for activity to slow, perhaps sharply," Gardner added.