The increase in UK house prices is accelerating

UK house prices rose at their fastest pace in three years in July, with the average house price increasing by 3.9 per cent compared to the same month in 2012, according to data from Nationwide.

Analysts had expected an increase of 3.1 per cent, following 1.9 per cent growth in June 2013.

Month-on-month, house prices were up 0.8 per cent – more than double the monthly growth figure between May and June 2013 (0.3 per cent), and twice what was expected.