UK house prices hits new three-year high

Based on the new study, house prices have recorded their fastest growth in almost three years.

07:48 01 July 2013

According to Nationwide, house prices in UK are picking up fast and have now reached three-year-high. It added that the annual increase of 1.9per cent in June marks the strongest year-on-year increase since September 2010. This according to the study, is a further sign that the market is gathering pace.

Building society credits the government efforts and limited number of available houses for increasing home values. 

On month-to-month basis, house prices in June (0.3per cent) are quite lower compared to data gathered in May (0.4per cent).

However, the study also revealed that house price gap between UK and London is the widest it has ever been. While London prices are now at a new all-time high at £318,214 on average, prices across UK are still 9per cent down their pre-crisis peak.

London’s annual growth is now at 5.2per cent followed by East Angila with 3.6per cent annual increase.

Several recent studies support Nationwide’s observation that the housing market is picking up partly because of government’s initiative such as funding for lending which offer lenders access to cheap finance.