House price growth continues to accelerate

House price growth rose by 1.1 per cent in June to lift the annual rate of price inflation to its highest level since January 2005, the Nationwide building society has reported.

The lender's latest house price index has found that annual house price growth for June now stands at 11.1 per cent – a rise of 0.8 per cent on May's figure.

The average price of a home in the UK now stands at £184, 070, the study noted, equivalent to a £50 per day increase.

"House prices increased by a stronger than expected 1.1 per cent in June - the fastest monthly increase in 2007. The pick up during the month brings the annual rate of house price inflation to 11.1 per cent, its highest level since January 2005 and more than twice as fast as the pace of growth at this time last year," noted Nationwide economist Fionnuala Earley.

The news follows the publication of similar data by the Department for Communities and Local Government earlier this month, which reported a similarly strong rise in prices during April.


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