UK House prices jump 10.9%

Nationwide report house prices have risen the most in seven years and the average house in the UK is now at £183,577.

CEO Robert Gardner confirms the “underlying demand is likely to remain robust” but also reinforces the polarised rate growth reported across England where the south has shown to be significantly stronger. Prices in the city were about 20% above pre-crisis levels whereas they are 2% below pre-crisis levels in the UK as a whole.

Bank of England Chief Economist Spencer Dale is wary of the ability for developments in the housing market to cause threats to the stability of the financial system and confirms that in June the Bank of England “will look very carefully at the house housing market”.