UK house prices rise in Dec

[LONDON] British house prices rose more than expected in December, although economic uncertainty looks likely to curb the pace of growth in 2017, mortgage lender Nationwide said on Thursday.

Annual house prices growth stood at 4.5 per cent in December, up from 4.4 per cent in November. Economists polled this month by Reuters had expected to see growth of only 3.8 per cent.

Nationwide repeated its forecast that house prices are likely to rise by around 2 per cent in 2017, although that would depend on how the economy fares. "Low interest rates are expected to help underpin demand while a shortage of homes on the market will continue to provide support for house prices," said Nationwide chief economist Robert Gardner.

REUTERS