The latest Nationwide Building Society House Price Index shows that house prices in the UK rose by 0.3% last month.
According to the Nationwide the average house in the UK is now worth £166,022, down 0.7% over the past 12 months, despite May’s rise.
The survey comes in the same week that a Land Registry survey showed house prices falling by 0.3% in April.
60th anniversary of the Nationwide House Price Index
2012 marks the 60th anniversary of the Nationwide House Price Index, and during that time the average house price in the UK has risen from a modest £1,891 to £166,022.
The 88 fold increase is significantly greater than the increase in the cost of goods and services, which have risen by just 25 times.
The Nationwide’s Chief Economist, Robert Gardner, said: “Dramatic increases might be expected over such a long timeframe, but over the last eighteen months, house prices have been fairly stable, despite the challenging economic backdrop.”
He continued: “May’s data provides some comfort that this pattern is being maintained. Prices were up by a modest 0.3% over the month, and were just 0.7% lower than May last year, even though the UK economy dipped back into recession in quarter one, and showed few signs of a significant pickup in economic activity at the start of quarter two.”
“Demand for homes remains subdued on the back of weak labour market conditions, but the lack of homes coming onto the market is providing support for prices.
This is in part a reflection of the low rate of building in recent years which has failed to keep pace with household formation.”
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