LONDON (MktNews) - UK house prices in January rose a seasonally adjusted 2.5% on the month and 11.2% on the year, the Nationwide reported Thursday. In December, they rose 1.2% on the month and 9.3% on the year. The average house price rose to Stg83,450 in January from Stg82,188 in December. David Parry, divisional director, planning, said, "This latest rise mirrors relatively buoyant consumer confidence and continues the pick-up in prices since the Autumn. "It is likely that house hunters, and in particular first-time buyers, who took the decision to postpone purchasing last year, are feeling more confident and are now entering the market." The Nationwide predicted that annual house price inflation would end the year at 7%, compared with 9.3% in 2000. "This year looks set to settle down into a steady period of sustainable growth," Parry said.