U.K. Home Prices Cap Best Year Since 2006 as Mortgages Surge

U.K. house prices rose and mortgage lending surged more than forecast as the property market’s momentum continued to build at the end of 2013.

Nationwide Building Society said home values increased 1.4 percent in December, taking their gain last year to 8.4 percent, the biggest annual increase since 2006. Separate reports in London showed mortgage approvals are now at the highest in almost six years and growth in construction is being led by homebuilding.