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UK house prices rose to £266,604 in June

UK house prices rose to £266,604 in June
Christina Hoghton
Written By:
Christina Hoghton
Posted:
02/07/2024
Updated:
02/07/2024

UK house prices rose by 1.5% in the year to June, according to Nationwide.

In its latest House Price Index, the building society said this took the average house price to £266,604.

It was just 0.2% higher than in May.

Robert Gardner, Nationwide’s chief economist, said: “While earnings growth has been much stronger than house price growth in recent years, this hasn’t been enough to offset the impact of higher mortgage rates, which are still well above the record lows prevailing in 2021 in the wake of the pandemic.

“For example, the interest rate on a five-year fixed rate mortgage for a borrower with a 25% deposit was 1.3% in late 2021, but in recent months this has been nearer to 4.7%.

“As a result, housing affordability is still stretched. Today, a borrower earning the average UK income buying a typical first-time buyer property with a 20% deposit would have a monthly mortgage payment equivalent to 37% of take-home pay – well above the long-run average of 30%.”

Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Buyers swapped packing cases for suitcases, as the summer slowdown hit the property market early this year.

“House prices were broadly flat, as the pressure of higher prices and mortgage rates persuaded some buyers that now was the time to get on with the rest of their lives, and leave the property search for later in the year.”

Across the UK

The lender said that Northern Ireland was the best performing region in the second quarter of the year, with prices rising 4.1%.

East Anglia was the weakest performing region, with prices down 1.8% over the same period.

Across England overall, prices were up 0.6% compared with Q2 2023, while Wales and Scotland both saw a 1.4% year-on-year rise.

Northern England (comprising North, North West, Yorkshire and the Humber, East Midlands and West Midlands), saw prices up 2.4% year-on-year.

Meanwhile, Southern England (South West, Outer South East, Outer Metropolitan, London and East Anglia) saw a 0.3% year-on-year fall.

Related: Today’s first-time buyers won’t be mortgage-free until they’re 63