Annual house price inflation hits 10.5%

Average prices rose by 1% in April, bringing the annual rate of increase to 10.5%, the highest level recorded since June 2007, according to Nationwide. The average UK property is now worth £167,802. However, Nationwide warned these healthy gains are likely to lose ground later this year, as the number of sellers coming to the market starts to outstrip the number of buyers. "There has recently been evidence of a slight shift in the supply-demand balance," says Martin Gahbauer, the Nationwide's chief economist. "While the recovery in new buyer enquiries at estate agent offices app...