More good news for UK property market

New UK property figures released by the Nationwide Building Society last week show that house prices in the country are continuing to move in the right direction.

UK Property

The figures show that house prices in May were up by 0.4 per cent on the previous month, while annually they were up by 1.1 per cent – the fastest annual price rise recorded since November 2011. The Building Society’s Index shows that Prices have now increased every month since October.

What’s more, the number of property transactions made in the first four months of this year is approximately 5 per cent above the monthly average for the same time last year.

According to Robert Gardner, Nationwide’s chief economist, the latest data is further proof that the UK housing market is rapidly recovering after years of struggle.

“A number of factors are likely to be contributing to the pick-up in activity,” he explained. “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. Indeed, mortgage rates have fallen back towards all time lows in recent months.

“With the UK [economy] returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also be playing a role in boosting sentiment,” Gardner added.

The average property price in the country now stands at £167,912, the Nationwide data shows.