South of England prices keep rising
UK house prices increased by 0.3 per cent in June, with the typical home now worth £168,941, with southern England, especially London, recording stronger rates.
Commenting on the figures, which are 1.9 per cent higher than June last year, Nationwide’s chief economist, Robert Gardner, said: “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. There has also 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.
“Signs of a modest improvement in wider economic conditions may also be playing a role in boosting buyer sentiment.”
House prices in the south of England were up 3 per cent year on year in the second quarter, more than twice the 1.4 per cent pace recorded across the UK as a whole in the three months to June.
Moreover, in London prices were up by 5.2 per cent year on year, taking the price of a typical home in the capital to an all-time high of £318,214 – almost twice the level prevailing in the rest of the UK when London is excluded.
Mr Gardner continued: “London was again the top performing region, with prices improved compared with Q2 2012. London has seen the greatest recovery in prices of any region, and prices are now 5 per cent above their 2007 peak at £318,214.
“Among the English regions, the South of England and the Midlands continued to outperform the North of England.
“Outside of London, East Anglia was the strongest performing region, with annual price growth of 3.6 per cent, while Yorkshire and Humberside was the weakest English region, with prices down 0.8 per cent over the year.”