Nationwide predicts lower UK house prices

Nationwide Building Society, Britain’s biggest customer-owned lender, expects British house price inflation to slow to 15% this year as rising interest rates cool the market, the society said on Thursday.

“Annual house price inflation is currently at around 19% but our forecast for the year is for around 15%. The increase in interest rates will gradually provide a ratcheting effect which will bring down the rate of price increases,” Stuart Bernau, commercial and treasury director at Nationwide, said.