House prices increased by 0.5% in May, according to the latest monthly survey from Nationwide.

This rise means that the average price of a UK home is 169,162 – 15% higher than the same time last year.

The modest price rises of recent months is being driven by a relative shortage of properties for sale on the market.

"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," said Martin Gahbauer, chief economist at Nationwide.