HOUSE prices rose by 1.9 per cent during June as consumer confidence continued to buoy up the housing market.

Figures from the Nationwide Building Society showed that at the end of the year to June, house prices in the UK were increasing at an annual rate of 9.3 per cent.

But annual growth in the North was "notably weaker" than other areas of the UK, falling to 0.9 per cent in the second quarter, while growth in Scotland slowed to 0.2 per cent.

Nationwide said the lower house prices in the North and Scotland, as well as Wales and parts of the Midlands, should increase market activity there, but warned that the threat of further job losses in the manufacturing and technology sectors could undermine confidence in those areas in the short run.

The rise in prices during June has increased the average price of a house to £89,068.