"There appears to be a very, very slow thaw going on in the housing market"
- David Tinsley, BNP Paribas economist
U.K. house prices rose 0.3 per cent to £166,022 in May, the first increase in three months, said the Nationwide Building Society on Thursday.
"Demand for homes remains subdued on the back of weak labor-market conditions, but the lack of homes coming onto the market is providing support for prices," Nationwide Chief Economist Robert Gardner said in the report.
"This is in part a reflection of the low rate of building in recent years, which has failed to keep pace with household formation."
Mortgage approvals increased to 51,823 in April, the highest level since January, up from 51,067 in March, Bank of England data showed on Wednesday.
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