UK house prices have continued their upward trajectory during the course of this month, rising by 0.4% to £167,912.
According to the latest House Price Index from Nationwide Building Society, the price of a typical home increased by 1.1% compared with May 2012, rising at the fastest rate since November 2010.
Demand and interest from prospective buyers also grew during the first quarter of 2013, largely as a result of record low mortgage rates entering the market through the Government's £80-billion Funding for Lending Scheme.
Transaction levels climbed to 5% above the monthly average, whilst approval levels increased to 4% above the monthly average.
Consumer confidence is thought to have bolstered in recent weeks following the news that the UK narrowly avoided falling into a triple-dip recession, as well as predictions from the Bank of England Governor, Mervyn King, that an economic recovery was "in sight".
Chief economist at Nationwide Building Society, Robert Gardner, said: "With the UK returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also beplaying a role in boosting sentiment."
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