Nationwide House Price Index reveals property increased 0.3% in May.
According to May's Nationwide House Price Index, UK property prices have risen fractionally by 0.3% which means an average UK home now costs £166,022.
The chief economist for the Nationwide, Robert Gardner commented on the Nationwide House Price Index saying that it has just reached an important milestone having been started by the Nationwide when the Queen came to the throne in 1952.
Nationwide estimate that since the Queen came to the throne in 1952 Buckingham Palace which was valued at £11 million, has increased in value by 9000% and is now estimated to be worth around £1 billion.
While average house prices have not risen quite as much, they have experienced an 88 fold increase from £1,891 in 1952 to just over £166,000 today.
Mr Gardner went on to say that May's increase was modest and shows demand for property remains subdued due to weak labour market conditions. He added that the lack of new houses coming onto the market provides further support for property prices.
The Nationwide House Price Index also shows that property prices remain high when reviewed against income at five times average earnings.
However affordability is less stretched when the cost of a mortgage is compared to income. Repayments on an average mortgage are around 31% of net pay which is the lowest level in 10 years.
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