Government schemes such as Help to Buy and Funding for Lending, along with low mortgages rates, have pushed house prices up further.
According to reuters.com, new figures from Nationwide show that in the past year house prices have increased by 5.8 per cent. Just last month the building society said house prices had risen by five per cent over the year but thanks to a further increase this month – the overall figure has risen.
The average cost of a home in the UK is now £173,678 – which is almost £10,000 more than the average price at the end of last year, reports theguardian.com.
Nationwide believes the rise is partly due to government schemes which have helped a huge number of people get onto the housing market. It also cites low mortgage rates and increasing consumer confidence as other reasons behind the boost.
Robert Gardener, chief economist at Nationwide, said that UK house prices are seeing a continuing upward trend.
“The ability and willingness of potential buyers to transact has been steadily increasing,” he commented. “The ability to buy has been supported by continued gains in employment and policy measure such as the Help to Buy and Funding for Lending schemes, which have improved the availability and lowered the cost of credit.”