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Double-digit rise in UK house prices in year to June

Christina Hoghton
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Christina Hoghton

The average price of a UK home climbed to a new record high of £271,613

House prices rose by 0.3% in June, said Nationwide.

The building society measured an increase of 10.7%, or £26,000, over the last 12 months.

It takes the average property price in the UK to £271,613 – a record high.

The South West overtook Wales as strongest performing region, with house prices up 14.7% year-on-year, while London remained weakest with annual growth of 6%.

Despite the strong figures, there are ‘tentative signs of a slowdown’ said Nationwide, as annual inflation has softened from 11.2% in May.

Robert Gardner, the building society’s chief economist, explained: “The market is expected to slow further as pressure on household finances intensifies in the coming quarters, with inflation expected to reach double digits towards the end of the year.

“Moreover, the Bank of England is widely expected to raise interest rates further, which will also exert a cooling impact on the market if this feeds through to mortgage rates.”

Iain McKenzie, CEO of The Guild of Property Professionals, added: “With an 11th consecutive month of house price rises and yet another record high, the market is in rude health, but the tell-tale signs that it’s losing momentum are becoming impossible to ignore.

“The strong employment rate and low housing stock are pushing the housing market upwards, while rocketing inflation and a slow ratcheting of interest rates are acting to pull it back downwards.

“These forces are finely balanced at the moment, but we’re likely to see the market continue to cool over the coming months.”