UK house prices rise by 8.7% in June

The average price of a house in the UK jumped by £2,100 to £214,000 in June, with house values surging in the east of England, according to the Office for National Statistics.

This 8.7 per cent overall increase marked a continuation of the strong growth seen since the end of 2013, and is believed to be down to the implementation of the new stamp duty rate for landlords earlier in the year.

Looking at England in isolation, the leap in average house prices was even greater (9.3 per cent), coming in at £229,000. Growth was less significant in Wales and Scotland, up 4.9 and 4.6 per cent respectively in the 12 months preceding July 2016.

However, as the result of the EU referendum didn’t emerge until late on in June, it won’t become clear just how much Brexit has affected house prices until July’s figures are published halfway through September.

Regions

The most expensive houses were found, unsurprisingly, in London, where the average house valued at £472,000, with south-east and east England following, costing £309,000 and £270,000 respectively.

In contrast, north-east England held the most affordable houses, with a £124,000 average price, which marked a 1.5 per cent increase in the 12 months up to and including June 2016.

The most significant increase in house prices over June was witnessed in Na h-Eileanan Siar in the Western Isles of Scotland, where prices jumped 28.1 per cent to £121,000.

The lowest annual growth was seen in the city of Aberdeen, where prices slumped 6.8 per cent to £178,000.

Right now

Jeremy Leaf, a north London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors, said these figures “don’t really reflect what is happening on the ground now”.

He told ThisIsMoney.co.uk: “The sales volumes for April saw a considerable fall in the number of transactions but were affected by the stamp duty hike at the start of that month – the referendum was still some way on the horizon and people weren’t even thinking about it then.

There is no doubt that there is too much concentration on pricing and not enough on transactions. House prices have been rising mainly because of shortage of stock.”

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