British house prices grow at fastest rate in 3 years

Britain's house prices has posed the strongest pace of growth in over three years, with the price rising 5 percent on the annual basis in September, according to a house price survey report issued by the Nationwide building society on Friday. The Nationwide said the house prices rose 0.9 percent in September, higher than the 0.7 percent growth in the previous growth, bringing the average price in Britain to 172,127 pounds (277,695 US dollars) in the month. The continuous rises of house prices have made finance minister George Osborne worried about potential property price bubble. It is reported Osborne will give the central bank, the Bank of England, greater powers to prevent the government's property-boosting program "Help to Buy" scheme causing a property boom. Analysts believed that house prices are fuelled by the rocketing prices in southern regions of England, especially London where prices have risen by around 10 percent year-on-year. Robert Gardner, Nationwide's chief economist, said: "For the first time since 2007, all thirteen UK regions experienced annual house price growth in the third quarter of 2013." He warned that there are signs that the pickup is becoming increasingly broad-based. Gardner said, "The acceleration in house price growth from the subdued pace prevailing throughout 2011 and 2012 has been surprisingly quick, though house prices are still some way below their previous peaks in most parts of the country." However, house prices are still around 8 percent below their 2007 highs, Gardner pointed out. There is still significant regional variation, with prices in Scotland, Wales and the North of England around 12 percent to 14 percent below their previous peaks, while in many southern regions prices are 5 percent to 7 percent lower. Only in London are prices at an all-time high, 8 percent above the previous peak.