20 May 2003, 10:37  UK house prices up 1.3pc in May

UK house prices rose a non-seasonally adjusted 1.3pc in May to stand 15.6pc higher than a year earlier, according to property website Rightmove. That was the strongest monthly rise since February and was significantly stronger than April's 0.5pc rise. But the annual number was the lowest since the Rightmove series started last August. House prices are a significant driver of consumer spending in the UK where two thirds of people own their own home.
However, there is growing evidence that the boom of 2002 is now well and truly over. The Bank of England said on Thursday it expected house price growth to slow to zero over the next year. "We are surprised that each of the last four months has shown a rise after some falls around the turn of the year. We are seeing steady, sustained growth and certainly not a collapse," said Rightmove's Mike Scott. The report also said that activity in the property market was picking up as prospects became clearer for the UK and international economies. //www.fxcentre.com

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