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| House price growth remains strong, says Nationwide | House price growth remains strong, says Nationwide |
| (35 minutes later) | |
| House price growth in the UK remained strong last month, the Nationwide building society has said. | House price growth in the UK remained strong last month, the Nationwide building society has said. |
| Its latest survey found that the annual rise in house prices jumped from 11.1% to 11.8% in June, with all regions across the UK seeing an increase. | Its latest survey found that the annual rise in house prices jumped from 11.1% to 11.8% in June, with all regions across the UK seeing an increase. |
| Prices increased 1% in June, compared with a 0.7% rise in May. | Prices increased 1% in June, compared with a 0.7% rise in May. |
| House prices have now surpassed their 2007 peak, Nationwide said, with the average value of a UK property now at £188,903. | |
| The building society said there were "significant variations" across the UK with the south of England continuing to see the strongest growth in house prices. | The building society said there were "significant variations" across the UK with the south of England continuing to see the strongest growth in house prices. |
| London saw the sharpest rise, with prices up almost 26% in the three months to the end of June compared with the same period last year. | London saw the sharpest rise, with prices up almost 26% in the three months to the end of June compared with the same period last year. |
| Nationwide said it expected price gains to slow in London from July onwards, citing "anecdotal evidence" from surveyors and estate agents. | Nationwide said it expected price gains to slow in London from July onwards, citing "anecdotal evidence" from surveyors and estate agents. |
| Lack of supply | Lack of supply |
| However, Nationwide's chief economist Robert Gardner said recent moves by the Bank of England's Financial Policy Committee to ensure the UK housing market does not overheat, were unlikely to have a "significant impact". | However, Nationwide's chief economist Robert Gardner said recent moves by the Bank of England's Financial Policy Committee to ensure the UK housing market does not overheat, were unlikely to have a "significant impact". |
| "Most major lenders are already using a stress rate in their affordability calculation... similarly, the proportion of house purchase loans at or above 4.5 times borrowers' income is currently some way below the 15% cap," he added. | "Most major lenders are already using a stress rate in their affordability calculation... similarly, the proportion of house purchase loans at or above 4.5 times borrowers' income is currently some way below the 15% cap," he added. |
| But Mr Gardner said rising expectations that interest rates may rise earlier than expected may dampen housing activity. | But Mr Gardner said rising expectations that interest rates may rise earlier than expected may dampen housing activity. |
| "Nevertheless, it is important to note that the Financial Policy Committee does not have the tools to address the fundamental problem with the housing market - the lack of supply," he said. | "Nevertheless, it is important to note that the Financial Policy Committee does not have the tools to address the fundamental problem with the housing market - the lack of supply," he said. |