With millions of Brits already facing debt management difficulties, the amount of money consumers need to borrow to buy a home increased by a further 0.9 per cent during April, recent figures demonstrate.
And this increase equates to an average rise in the cost of a property in the UK of around £16,741 since April 2006, heightening debt management concerns for thousands of people around the country.
“The underlying trend is softening and the return to double-digit annual growth largely reflects a weak period this time last year,” said Nationwide chief economist Fionnuala Earley.
She added that affordability problems would not lead to a crash in house prices, despite the likelihood that the Bank of England will raise the base rate of interest again next month.
Last month, the Consumer Credit Counselling Service predicted that British homeowners looking to find a debt solution will be “on the rack” throughout 2007.