Figures from the Nationwide show prices rose by 0.9% in April and brings the annual rate of house inflation to 10.2% and according to the Halifax, the average house price is now around £194,000.
However many analysts predict the slowing down in house price rises over the coming year. The number of first time buyers getting on to the property ladder has also fallen from the same period last year.
But with the latest house prices still on the increase, this will put increased pressure on the bank of England to raise interest rates.
If rates do go up by a quarter percentage point it is not thought this will have much effect on the housing market, but if rates were pushed up to 6% or above this may have a significant effect on the housing market.
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