The fourth monthly rise in house prices, according to the Nationwide index, weighs in at 1.6%, bringing the three month average up 3.3%, the highest rate of growth since February 2007. The annual rate of deflation is - as a result - shrinking fast, down to 2.7% from 6.2%. The Nationwide index peaked in October 2007, 14.4% higher than its current level. Accompanying commentary points to abnormally low interest rates and a shortage of available property to explain the rapid increases. Both of these circumstances could change. And don't forget this.

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