House price growth continues reports Nationwide

House prices are increasing "stubbornly", figures from Nationwide suggest.

According to research by the financial services firm, property prices rose by 0.5 per cent over the course of this month compared to a growth of 0.9 per cent during April.

With the average home now up by £17,000 from the same month last year to £181,584, consumers could well find their secured and home loan costs increasing.

As a result, Nationwide chief economist Fionnuala Earley warned potential first-time buyers against spending beyond their means incase further rises to the base rate means they become unable to manage loan repayments.

She said: "However, higher interest rates, with the threat of more on the horizon, should signal caution to those thinking about stretching themselves to get a foot on the ladder.

Ms Earley added there was also a "strong chance" that interest rates will rise to 5.75 per cent through the remainder of this year, which in turn could increase secured loan costs for consumers.

Earlier this week, figures from the Land Registry indicated that in the 12 months leading up to April, the average cost of a home in England and Wales rose by 9.1 per cent.

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