House prices 'show strongest growth in 18 months'

House prices have recorded their strongest year-on-year growth in 18 months, in further signs that the market is gathering momentum, Nationwide has reported.

House prices are now 1.1% higher than they were a year ago reaching £167,912 on average, the building society said.

Homes back under the hammer Credit: Anthony Devlin/PA Wire

The prices have been boosted by a sharp increase in the number of mortgages on the market, partly as a result of the government's Funding for Lending scheme, which has given lenders access to cheap finance to help borrowers.

Other government schemes like NewBuy and Help to Buy have also helped by giving people with smaller deposits a helping hand.