Pick up in house price growth continued in June

UK house price growth continued to gather momentum in June, rising by 0.3% over the month, according to the Nationwide House Price Index. The annual rate of house price growth increased to 1.9% in June - the fastest pace since September 2010.
 
Commenting on the figures, Robert Gardner, Nationwide's Chief Economist, 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, as well as 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. 
 
"At the same time, there are few signs that the supply of housing is improving significantly.  Indeed, construction data point to a further decline in building activity in recent quarters from already depressed levels. For example, in Q1 2013 housing completions in England were down 8% compared to the same period of 2012 and around 40% below the average number of quarterly completions in 2007.

"The price of a typical house rose by 0.4% in Q2 2013, after allowing for seasonal effects.  Prices were up 1.4% compared with the same quarter the previous year.
 
"London was again the top performing region, with prices up 5.2% compared with Q2 2012.  London has seen the greatest recovery in prices of any region, and prices are now 5% above their 2007 peak at £318,214.
 
"Wales saw a softening in annual price growth from 2.5% (in Q1) to 1.2%.  Scotland continued to see price falls, with prices down 1.2% year-on-year.  Northern Ireland usurped Scotland as the worst performing region, with prices down 2.1% compared with Q2 2012.
 
"Amongst 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%, whilst Yorkshire & Humberside was the weakest English region, with prices down 0.8% over the year."