House prices continued to rise by 0.5% in May, according to the latest survey by Nationwide.

The average house price is £169,162, which is £15,000 higher than this time last year.

Commenting on the figures Martin Gahbauer, Nationwide's Chief Economist, said: "Housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months. The current supply-demand balance on the market is still consistent with relatively stable to modestly upward trending prices."

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Nationwide said house prices have risen by 12.2% since they reached a trough last year.

The group said that the current lack of homes for sale is "still consistent with relatively stable to modestly upward trending prices."

(CD)