UK House Prices Increase In June

According to the Nationwide, UK house prices increased by 0.3% in June.

The building society said the results were helped by the Government's Funding for Lending Scheme and improving job prospects.

The annual rate of price growth jumped to 1.9%, its fastest rate since September 2010, bringing the average cost of a house to £168, 941.

Despite the positive results, however, Nationwide said there were few signs of the housing market improving.

Robert Gardner, Chief Economist at Nationwide, explained: "Demand for homes has been supported by further modest gains in employment, as well as an improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures, such as the Funding for Lending Scheme.

"Signs of a modest improvement in wider economic conditions may also be playing a role in boosting buyer sentiment.

“At the same time, there are few signs that the supply of housing is improving significantly. Indeed, construction data points to a further decline in building activity in recent quarters from already depressed levels.

"For example, in Q1 2013 housing completions in England were down 8% compared to the same period of 2012 and around 40% below the average number of quarterly completions in 2007."

Looking at annual price growth, London was the top performer, with prices up 5.2% in the second quarter year-on-year. Prices are now 5% above their 2007 peak of £318,214.

However, annual price growth in Wales and Scotland continued to decline, while Northern Ireland was the worst performer, with prices dropping by 2.1% in the quarter from a year earlier.


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