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UK house prices bounce back in May, says Nationwide

Over the year to May, house prices rose by 1.3%, said Nationwide. That compares to 0.6% growth in the 12 months to April.

The building society said that consumer confidence had “improved noticeably over the last few months, supported by solid wage gains and lower inflation”.

An average two-year fixed rate mortgage is currently 5.92%, according to Moneyfacts, the financial information firm. That compares to 5.83% in April.

The rate on the average five-year fixed mortgage is 5.49%, up from an average of 5.4% last month.

Sarah Coles, head of personal finance at Hargreaves Lansdown, said that high house prices are a barrier for many buyers because “when coupled with higher mortgage rates, the monthly payments are pushed out of reach”.

But she said: “Buyers are pushing through, which owes an awful lot to people’s confidence in their own personal financial position.

“The easing of inflation, coupled with robust wage growth, and relatively low levels of unemployment, mean people are feeling more secure.”

The latest figures from the Office for National Statistics showed that average pay, excluding bonuses, rose by 6% between January and March.

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