Nationwide Building Society has said it has experienced a 92.7 per cent rise in homeowner loans in the past year, reflecting high demand for homes despite rising rates.
It has also said it expects the housing market to only slow down gradually this year, with house price inflation over the whole of 2007 at eight per cent.
This figure only just falls in Nationwide’s predicted five to eight per cent range at the start of the year, the Guardian reports.
Predicting the rate of house price inflation would fall slightly from its current 10.2 per cent, chief executive Graham Beale told the Daily Express he expected the housing market to stay “fairly strong”, but would experience a “cooling” in the second half of the year.
He said a strong buy-let market and the shortage of houses in the south-east were a factor in the increase.
The news will disappoint many people wanting to get on the housing ladder, who will have hoped house prices would not rise so much and will be seeking the best homeowner loan deals.
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