The annual rate of house price inflation moved into double digits for the first time since June 2007, according to a report by Nationwide.

The price of a typical UK property rose by a seasonally adjusted 1.0% month-on-month in April, leaving house prices 10.5% higher than a year earlier.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "The year-on-year rate in this month’s figures, however, received an additional boost from the fact that April 2009 was one of the weaker months last year.

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"Given the very strong performance of house prices from May 2009 onwards, it will take monthly increases in excess of 1% for the annual rate of inflation to be maintained in double digits going forward.

"The smoother three month on three month rate of inflation edged down further from 1.5% in March to 1.1% in April, which primarily reflects the impact of February’s 1.0% decline in house prices. April’s figures leave UK house prices exactly 10% below the October 2007 peak."

Over the lifetime of the last Parliament (May 2005 to April 2010), house prices have risen by 6.7%. This compares to a 13.5% increase in the consumer price index, the official target measure of inflation.

(CD/GK)