UK property recovery gains momentum

UK house prices increased by 0.4%, according to the latest survey from the Nationwide building society.

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

Property market

Property market

 

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

Market being assisted by accessible credit

Nationwide’s chief economist, Robert Gardner, said a number of factors were likely to have contributed to the recent pick-up in activity including “…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,”.

Earlier this week in the US, a strong recovery in the property market there shows prices there gaining at the strongest in a number of years.

In Ireland, property prices are continuing to moderate. However, in the latest mortgage statistics released from the Irish Banking Federation, mortgage approvals recorded a sharp increase in April of this year.

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