The annual rate of house price inflation moved into double digits for the first time since June 2007, according to a report by Nationwide.

The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month in April, leaving house prices 10.5% higher than a year earlier.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "The year-on-year rate in this month’s figures, however, received an additional boost from the fact that April 2009 was one of the weaker months last year. Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward. The smoother three month on three month rate of inflation edged down further from 1.5% in March to 1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices. April’s figures leave UK house prices exactly 10% below the October 2007 peak."

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Over the lifetime of the last Parliament (May 2005 to April 2010), house prices have risen by 6.7%. This compares to a 13.5% increase in the consumer price index, the official target measure of inflation.

(CD/GK)