UK house prices recorded a "modest" rise in May, increasing by 0.4%, according to the latest survey from the Nationwide building society. It said the increase provided further support for "the view that the housing market is gradually gaining momentum".

The annual rate of price growth rose to 1.1%, the fastest pace since November 2011. The increases mean that the average house now costs £167,912, the Nationwide said. Robert Gardner, Nationwide's chief economist, said a number of factors were likely to have contributed to the recent pick-up in activity.

"There has been an improvement in the availability and a reduction in the cost of credit, partly as a result of policy measures, such as the Funding for Lending Scheme," he said. "With the UK returning to growth in the first quarter of 2013, the improvement in wider economic conditions may also be playing a role in boosting sentiment."

The Funding for Lending Scheme allows banks to borrow money at a discount from the Bank of England, providing they can show they have passed it on to customers in the form of loans.

Mr Gardner said that this had increased the availability of mortgages and pushed down rates.

Data from the Land Registry has shown that price changes have varied widely across the UK.

Figures published on Thursday, covering England and Wales, showed that house prices rose by 6.2% in the 12 months to the end of April in London, and by 1.4% in the South East of England.

However, the North East of England saw average price falls of 5.7% and there was a drop of 3.7% in the North West of England over the same period.

The annual increase across England and Wales was 0.7%, the Land Registry said.