Increase in house prices reported

The average cost of housing in the UK has risen to £154,016 this month, according to new figures.

People living in flats to rent in Southwark and other parts of London may feel that the rental market is the best option for them in this current climate.

Nationwide Building Society released the property price figures and said that it is difficult to tell whether the 1.2 per cent monthly increase in average values is a sign that the overall market is getting healthier.

It is the second time in three months that the building society has reported a month-on-month rise in prices, although April did see the average figure drop 0.4 per cent.

Martin Gahbauer, Nationwide's chief economist, said: "Although the short-term trend in house prices has clearly improved from where it was at the beginning of the year, it is still too early to say that the market is turning definitively."

Londoners wishing to find out the average cost of a property in their city will be able to see a geographical breakdown of house prices in the Land Registry's next index, which is published on Monday.

Written by Charles Mackay

Published 29th May, 2009

© 2009 Estates IT Limited

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