House prices rise at fastest rate since Nov 2011

Suzie Neuwirth

HOUSE prices rose at the fastest rate since November 2011 this month, thanks to an easier availability of credit and improved confidence in the UK economy.

Prices rose 0.4 per cent in May, according to Nationwide’s House Price Index.

“There has been an improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures, such as the Funding for Lending Scheme,” said Nationwide’s chief economist Robert Gardner.

“With the UK returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also be playing a role in boosting sentiment.”