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August Shows Rise In House Prices

Great news for home owners - August has shown a surprising 1.3% increase in the average cost of a UK home.

This is the biggest monthly increase in two-and-a-half years, according to Nationwide. This increase reverses the falls of the previous two months, and was higher than any other monthly increase since January 2010. The rise has been described as 'surprising'.

The chief economist of Nationwide, Robert Gardner, said "This may be explained by the surprising resilience evident in the UK labour market, with further increases in employment in recent months, even though the UK economy has remained in recession".

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