The shortage of homes coming to market is leading to a rise in house prices across the UK, according to Nationwide Building Society’s latest house price index.

Average house prices rose by 0.3% in July, the second month in a row that prices have risen, as a 1.1% growth was recorded in June. The average house price hit a new record of £211,671 in a new record for Nationwide’s index.

Commenting on the findings, Robert Gardner, Nationwide’s Chief Economist, said that “a lack of homes on the market appears to be providing support, with annual house price growth remaining only just outside the 3-6 per cent range, that has been prevailing for most of the past two years.”

He also said that while housing market developments are dependent on the UK’s broader economic performance, which slowed in the first half of 2017, “constrained supply” is likely to mean house prices continue to rise.

British summertime is usually considered a quieter time for the property market as many buyers/sellers go on holiday. However, the fact the market has shown signs of growth is welcomed news for many, a view that was shared by by EMoov.co.uk chief executive who said, “UK homeowners will have their fingers crossed that this turn around in price growth will be more consistent than the British summertime.

“At a glance, it looks as if the dark clouds of buyer and seller uncertainty are finally starting to lift from the UK housing market, with welcome signs of positive property price growth beginning to shine through.

“The summer months can generally be a slower time of year with many taking a break from their sale to go away, so it is promising that the market has bounced back despite the slump in transactions and mortgage approvals witnessed in June.

“Although buyer demand may take some time to return to normal levels, a sustained shortage of stock should continue to stimulate an upward price trend.”