Nationwide: UK house prices see modest rise

Robyn Hall

May 30, 2013

The annual rate of price growth rose to 1.1% – the fastest pace since November 2011.

The increases mean that the average house now costs £167,912.

Robert Gardner, Nationwide’s chief economist, said: “There has been 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.

“With the UK returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also be playing a role in boosting sentiment.”

Ben Thompson, managing director of Legal & General Mortgage Club, said: “Overall the figures are painting an increasingly optimistic picture.

“However, the pace and extent of recovery is still split across the UK.

“Clearly London and the south-east is driving a great deal of momentum.

“Whilst fears of a bubble in the housing market persist they are largely unfounded as in other areas in the UK such as Nottingham sentiment is not universally positive thus making the picture patchier.

“As it stands house prices are only inflated in the capital and elsewhere in the country it could be argued that additional stimulus is still needed to get us fully on the road to recovery.”

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