House prices are now only 10 per cent less than their October 2007 peak, according to Nationwide’s monthly house price index.
The figures show there was a 0.5 per cent increase month-on-month in May following an increase of 1.1 per cent in April.
House prices have also inc-reased by 12.2 per cent since the February 2009 trough, falling 19.3 per cent from the October 2007 peak. The average UK house price is now £169,162.
Commenting on the figures, Nationwide chief economist Martin Gahbauer says: “Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale despite a slow return of more sellers in recent months. The current supply-demand balance on the market is still consistent, with relatively stable to modestly upward trending prices.”
Email Mortgages chief executive Michael White says: “I am happy we are seeing prices not just stabilising but moving forward but I am not surprised. Speaking to lawyers, surveyors, estate agents, the comments have been the same – it is ent-irely consistent.”
Private Finance director Melanie Bien says the figures show the market is relatively healthy but that there could be uncertainty in the future.
She says: “People do still want to buy and sell and there is still movement in the market. I think it is astonishing it is close to what it was at its peak.
“I believe that there is still some uncertainty ahead because of the potential changes to capital gains tax. I do not think this should necessarily make people go out and sell their homes but people will react to any changes.”