House price in UK are at the same level as September 2008 by the increase of 0.9 percent for last month. The average price of a home in UK is at £161,816 the fifth continuous monthly rise in house price. According to the Bank of England, the nation’s homeowners continued to pay off more of their mortgages in between April and June.

Nationwide released the figures in their monthly house price index however; the question has been raised by the high supply of rental property about the durability of price recovery. Recent house price increases were unlikely to continue at their present rate if more properties come to market warned Nationwide. Nationwide chief economist Martin Gahbauer said most intense phase of recession and financial crisis has likely to be pass away. However, the housing market will face problem in form of high unemployment, restrictive credit conditions, and awaiting withdrawal of stamp duty holiday. It is surprising to see house prices continuing to increase at a very strong rate. Another reason that might depress house prices if property owners decided to sell their homes instead of letting to tenants. David Smith of property consultancy Carter Jonas said if anyone hopes to sell now as window of opportunity that might shut soon. More instability should be expected in terms of rising unemployment and interest rates. This combination will bring more property on market as people struggling to meet their repayments, which will apply downwards pressure on prices.