Nationwide reports further house price rise

Nationwide has reported a 0.5 per cent month-on-month rise in house prices for May.

The high street bank says values are now 12.2 per cent higher than their low point, experienced in February 2009.

According to Nationwide, the average UK home is now priced at £169,162.

This is £15,000 more than a year ago, although annual house price inflation fell slightly last month from 10.5 per cent to 9.8 per cent.

Martin Gahbauer, Nationwide's chief economist, said that despite the increase, housing market conditions "remain characterised by thin transaction volumes".

He added: "There is a relative scarcity of properties for sale, despite a slow return of more sellers in recent months."

Earlier this month, the Land Registry reported a 0.2 per cent rise in house prices between March and April 2010.

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2010-06-04 13:21:50 © Moneyextra.com