House prices rising at fastest pace for three years

Property prices across England and Wales have climbed at their fastest pace for three years in June, indicating that the UK could be tipped for a housing market boom.

Figures from Nationwide show that the houses prices shot up by a staggering 1.9% in a year-on-year comparison, bringing the average cost of a UK property to £168,941. This represents the fastest growth rate in property prices since September 2010.

Ten of the 13 UK regions have seen house prices increase, with property price growth across the year strongest in the capital (5.2%), followed by East Anglia (3.6%) in second place.

Away from London, Newcastle recorded the strongest rise in house prices with the value of property soaring by an impressive 11% to £173,296.

Despite largely, positive figures some regions saw property values plummet over the last 12 months. The most significant fall in house prices was recorded in Northern Ireland (-1.2% to £108,116) followed by Scotland (-1.2% to £134,611) and Wales (-1.2% to £133,432).

Liverpool also saw property prices saw hefty 8% drop in property prices, taking average property prices to £142,454.

Nationwide’s chief economist Robert Gardner said: “There are few signs that the supply of housing is improving significantly. Indeed, construction data point to a further decline in building activity.

“For example, in the first quarter of 2013 housing completions in England were down eight per cent compared with the same period of 2012 and around 40 per cent below the average number of quarterly completions in 2007.”

Recent figures from the Royal Institution of Chartered Surveyors (RICS) showed that property prices rose at their fastest pace in May since June 2010.

RICS figures showed that the seasonally adjusted house price balance came in at +5, beating a forecast of +4 in a Reuters’ poll, and coming in at significantly above the balance of +1 recorded in April.