House price growth 'remains strong'

House price growth in the UK remained strong last month, the Nationwide building society has said.

Its latest survey found that the annual rise in house prices jumped from 11.1% to 11.8% in June, with all regions across the UK seeing an increase. Prices increased 1% in June, compared with a 0.7% rise in May.

House prices have now surpassed their 2007 peak, Nationwide said, with the average value of a UK property now at £188,903.

The building society said there were "significant variations" across the UK with the south of England continuing to see the strongest growth in house prices.

London saw the sharpest rise, with prices up almost 26% in the three months to the end of June compared with the same period last year. Nationwide said it expected price gains to slow in London from July onwards, citing "anecdotal evidence" from surveyors and estate agents.