House price rise reported - buy to let mortgages

01 July 2009

The average property price in the UK stood at £156,442 in June, according to Nationwide Building Society's latest index.

Representing a 0.9 per cent hike on May's figure, the average cost of a home has now increased three times in the last four months, the financial services provider said.

Landlords with buy to let mortgages who are looking to add to their portfolios may find that the homes they want to purchase are more expensive than they would have been last month.

Martin Gahbauer, Nationwide's chief economist, said that the reported house price rises will ensure sellers can feel more confident about marketing their homes, but warned that there will still be victims of the economic crisis who are forced to sell property.

"While it is encouraging to see that prices are no longer seeing steep falls, there are still many obstacles in the way of a genuine and sustainable price recovery," he explained.

Halifax, which suggested that the average property cost over £158,000 in May, will release its June House Price Index in early July.

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