The price of a typical UK home increased by precisely 1.0 per cent in April - the largest monthly increase since June 2014, according to the Nationwide.
As a result, the annual pace of house price growth increased for the first time in seven months, edging up to 5.2 per cent from 5.1 per cent a month earlier.
“The pick-up in price growth has occurred even though the pace of activity in the housing market has remained fairly subdued in recent months. Indeed, the number of mortgage approvals is still well below its long run average and 20 per cent below the levels recorded in early 2014” according to Robert Gardner, Nationwide’s chief economist.
He says the contrast between what he sees as the strength of the economy and relatively subdued activity in the housing market remains something of an anomaly. “It is possible that heightened uncertainty ahead of the election is weighing on activity, though there is no compelling evidence from previous elections to suggest a strong impact” he says.