HOUSE prices in the north of England have gone up by 30 per cent in the last year, with average prices in the North West now topping £100,000, according to the Nationwide.

The building society said that house prices across the UK went up 15.6 per cent in 2003, with the cost of a typical property increasing by 1.5 per cent to £135,444 in December.

Average prices are now £18,000 more expensive than the start of 2003 - despite November's first rise in interest rates in almost four years.

The annual growth rate compares with 25 per cent in 2002 and a forecast from Nationwide in January that prices would increase by 10 per cent in 2002.

Nationwide economist Alex Bannister said more rises were expected.

"The momentum that the market is carrying, combined with the expectation that the economic backdrop will remain relatively benign, suggests that prices will rise by 9 per cent in 2004," he said. Tweet