Nov. 10 (Bloomberg) -- Absa Group Ltd., South Africa's largest mortgage lender, said house price growth would be ``somewhat stronger'' from 2010.

Growth will accelerate from the rate of 3 percent to 4 percent projected this year and next, the bank said in an e- mailed statement today.

In the third quarter both real and nominal house price growth slowed, it said. Based on Absa's house price data and statistics published by the South African Reserve Bank ``the affordability of houses has improved,'' the bank said.

South Africa's central bank has raised interest rates six times since June last year, to 12 percent, in an effort to curb consumer spending and bring inflation down to within a 3 percent to 6 percent range. Prices grew by 13 percent in September.

To contact the reporter on this story: Nicky Smith in Johannesburg nsmith38@bloomberg.net.

Last Updated: November 10, 2008 02:00 EST