House prices march on - Nationwide

That 1.9% May gain is lower than the 2.1% recorded by the lender in the previous month, but it still means the average house now costs £149,020. The 19.5% inflation rate over the past 12 months equals an additional £24,000 on the price of the average house, Nationwide adds. Looking ahead, the index report forecasts price gains averaging 15% in the year to December 2004, meaning average monthly inflation should fall to 0.7% through the remainder of this year. "We expect the combination of muted post tax earnings growth, further interest rate rises and a downgrading of homeowners' pri...