London, England, United Kingdom (4E) – House prices in the UK accelerated at its fastest pace since 2005 in June, driven by London’s sharp annual growth, despite efforts by the government to help bring down overall mortgage approvals.
House price growth rose to 11.8 percent in June, the highest rate since January 2005, from May’s 11.1 percent, according to a report by mortgage lender Nationwide released Wednesday. The annual growth also topped economists’ forecast of an 11.2 percent gain.
House prices rose 1 percent in June month-on-month, compared with a 0.7 percent increase in May. Prices increased for the 14th month in a row in June. Prices were forecast to edge higher by 0.5 percent.
The average price of a UK home stood at 188,903 British pounds, with London’s average house prices breaching the 400,000 British pound level for the first time. House prices have now topped their peak in 2007.
House prices in London posted its steepest gains in the second quarter, up by 25.8 percent year-over-year. Prices in London advanced 7.6 percent from the previous quarter.