The UK has registered a 3.1 per cent rise in annual house prices in June, according to latest data released by Nationwide. This indicates a stable residential property market as there is momentum in price growth.

In another encouraging sign, the house prices rose 1.1 per cent month-on-month in June, reversing the previous three months’ falls.

“The annual rate of house price growth, which gives a better sense of the underlying trend, continues to point to modest price gains. Annual house price growth edged up to 3.1% from 2.1% in May. In effect, after two sluggish months, annual price growth has returned to the 3-6% range that had been prevailing since early 2015,” Nationwide said in a statement.

There has been a shift in regional house price trends. Price growth in the South of England has moderated, converging with the rates prevailing in the rest of the country.

During the second quarter of the year, the gap between the strongest performing region (East Anglia, which saw 5 per cent annual growth) and the weakest (the North, with 1 per cent growth) was the smallest on record, based on data going back to 1974. Nevertheless, when viewed in levels, the price gap between regions remains extremely wide.