May 31, 2013
Modest rise for house prices
The latest Nationwide survey has revealed that house prices rose by a modest 0.4% in May, taking the average price of a home to £167,912. The lender said the increase provided further support for the view that the housing market was gradually gaining momentum. The annual rate of price growth rose to 1.1%, the fastest pace since November 2011. Nationwide's chief economist, Robert Gardner, said a number of factors were likely to have contributed to the recent pick-up in activity. "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," he said. Mr Gardner said that FLS had increased the availability of mortgages and pushed down rates. Separate data from the Land Registry has shown that price changes have varied widely across the UK. Prices rose by 6.2% in the year to the end of April in London, and by 1.4% in the south east of England. In comparison, prices fell by 5.7% in the north east of England and 3.7% in the north west of England. The biggest price rises were in Camden where values rose by 11.8% to an average of £657,790. Meanwhile, prices in Middlesbrough plummeted by 11.8% to £72,038.