UK house prices show slight rise

House prices in Britain rose for the first time in 17 months in June, led by gains in London, the Land Registry said today.

House prices in Britain rose for the first time in 17 months in June, led by gains in London, the Land Registry said today.

The average price of a home in England and Wales increased 0.1 per cent from the previous month, the first gain since January 2008, to £153,046 pounds, the government agency said in a report on its website. Values in the capital rose 2 per cent.

The report adds to evidence that the market for residential property is stabilising while the economy is mired in the worst recession in a generation. A survey published yesterday by London-based property researcher Hometrack showed prices held their value for a third month in July.

"The movement does not signal a return to solid growth, but rather flattening prices," the Land Registry said in astatement.

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Half of the 10 regions tracked by the Land Registry showed an increase from the previous month.

The biggest increase in London was in the borough of Hackney, which gained 2.7 per cent from May. The average price in the capital is now £301,859.

Bloomberg