The price of a typical UK home increased by 0.4% in May and was 1.1% higher than May 2012, according to the latest data from Nationwide.
The typical UK home is now worth £167,912.
Robert Gardner, Nationwide's Chief Economist, said: "House prices edged up by 0.4% in May, providing further support for the view that the housing market is gradually gaining momentum. The three month on three month measure of house prices, which is a smoother measure of the underlying trend, has been in positive territory since October last year. The annual rate of house price growth also ticked up to 1.1% in May - the fastest pace since November 2011.
Results of the Worldwide Property Group’s April confidence tracker survey reveal that 80% of people surveyed ranked property as their number one investment of choice. This is the highest figure since August 2010 and the second highest figure since the survey began in August 2009.
With the recent bursting of the Silver bubble during which its value fell by a third, and substantial declines in many other commodities including Copper, Nickel and Tin, investors are looking for a steadier and safer place in which to put their money. Four out of five people surveyed believe this to be property.
In second place with a respectable 14% of the vote was Gold, an investment that is currently resisting the fate of other commodities with sales of Gold coins on track for their best month in a year. Shares and currency each received 3% of the vote whilst savings unsurprisingly received nothing as interest rates remain historically low.
Looking at other aspects of the survey 73% are expecting an increase in interest rates at some point during the next 12 months. However, with lenders continuing to reduce rates on many fixed mortgage products, renewed confidence has led 91% to be of the opinion that this will be by no more than 1% and subsequently led 83% of respondents to believe that right now is currently a good time to buy a property in the UK, whilst 63% believe the same of overseas property.
Commenting on the results, Kevin Wilkes, Managing Director of the Worldwide Property Group said, “It is great to see that property is the investment that people turn to when many others show signs of instability. It just reinforces that property is still widely regarded as a safe and secure investment, an investment that has demonstrated great resilience in the face of very difficult economic conditions. I have always been of the opinion that property is a great place to invest your hard earned money as generally its value has been shown to rise consistently over the long term. It appears that an increasing number of people share that view."
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Source: Property Drum