The average UK house price increased by 0.4% in May – up from £165,586 in April to reach £167,912 – according to the latest house price index from Nationwide. The index shows house prices have experienced an annual increase of 1%, up from 166,022 in May 2012, which represents the largest annual increase since November 2011.
Nationwide chief economist Robert Gardner says today’s figures reflect growing momentum in the housing market and forecasts the wider UK economy to undergo a gradual recovery in the coming quarters.
He says: “It’s not just prices – a number of measures of housing market activity have also started to move higher. In the first four months of 2013 the number of property transactions was running at around 5% above the monthly average prevailing in 2012. The number of mortgage approvals for house purchase in the first quarter of 2013 was also around 4% above last year’s monthly average.”