Global house prices rise at fastest rate since 2005

Global house prices have risen at their fastest pace since 2005, thanks to low interest rates, cash-rich households and a near universal shortage of housing. The average annual price change across 55 countries rose to 9.2% in the 12 months to June, according to Knight Frank. It is the fastest rise since the 12 months to March 2005, and is up from 4.3% during the same period last year. One in three countries registered double-digit price growth, including Russia and Germany. The US, Australia, New Zealand, Turkey and Canada registered nominal house price growth of more than 16%. Average house price growth was more than twice as high in advanced economies than in developing countries, with India and Spain the only countries that registered a decline. The FT (£)