House prices in the UK rose by 0.3% in June and were 1.9% higher than June 2012, according to Nationwide’s latest House Price Index.
The typical UK home is now worth £168,941.
Southern regions of England, especially London, continued to record stronger rates of house price growth, the UK’s largest building society reported.
(not seasonally adjusted)
* Seasonally adjusted figure NB: monthly % changes are revised when seasonal adjustment factors are re-estimated)
Robert Gardner, Nationwide’s chief economist, said: “UK house price growth continued to gather momentum in June, rising by 0.3% over the month. Indeed, the annual rate of house price growth increased to 1.9% in June – the fastest pace since September 2010.
“A number of factors are likely to be contributing to the recent acceleration. 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 point 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.”