The price of an average property in the UK increased by 0.3% during June, reaching £168,941, the highest level seen since July 2011.
House prices have risen by 1.9% since this time last year, indicating that the housing market is beginning to show signs of a recovery. Demand from buyers has grown over recent months, particularly as a result of schemes such as Funding for Lending, which have increased the availability of credit and lowered mortgage rates.
Despite a steady rise in house prices over the past couple of years, values remain below the averages seen before the credit crisis. Prices in England remain 5% below the peak seen in 2007, whilst homes in Northern Ireland are still 53% lower than five years ago.
Robert Gardner, chief economist at Nationwide, 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. Signs of a modest improvement in wider economic conditions may also be playing a role in boosting buyer sentiment," he said.
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