Nationwide are predicting that house prices will grow by over 10% in the next 12 months. This is an increase on their previous quarterly forecast.
House prices seem to be moving quicker in certain parts of the country rather than others. For example, in Mid-Devon property prices rose by some 40% in the last 12 months whereas Scotland was 8.5%. Property would still appear to be a profitable investment.
Our view
One day the bubble will burst and negative equity will be back. Be careful! Remember - always buy low, sell high. Whatever the market you are investing in.