UK house prices ‘rose modestly’ in May

<p>Nationwide says UK house prices rose this month.</p>

House prices in the UK experienced a modest rise this month, according to Nationwide.

The latest report from the company found that the price of a typical home increased by 0.4 per cent in May. It was also noted the average cost of a property was 1.1 per cent higher than in May 2012.

Nationwide's data shows that the typical UK home is now worth £167,912 and Robert Gardner, chief economist, stated the housing market is gradually gaining momentum.

"The three month on three month measure of house prices, which is a smoother measure of the underlying trend, has been in positive territory since October last year," he said.

Mr Gardner suggested the UK's improving economic situation could be one of the reasons why the property market is looking healthier.

Earlier in the year, data from the Office for National Statistics revealed the UK narrowly avoided going into a triple-dip recession by recording 0.3 per cent economic growth in the first quarter of the year.

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