Nationwide Building Society today said it expected house prices to rise by 15% during 2004 as the market remained strong.
The society said it had increased its forecast for the year from 9% after seeing the cost of property rise by more than 5% during the first three months of 2004 alone.
But it added that it still expected the market to slow down in the second half of the year, as consumers began to feel the effects of higher interest rates.
The increase in its forecast came as the society said prices rose by 1.4% during March, pushing the average cost of a home up to £142,584. On Monday property website Hometrack said it was doubling its forecast for price rises in England and Wales for 2004 to 8% from 4%.
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereComments are closed on this article