UK house prices rise to £288,000 in June but London sees a fall

Nick Cheek
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Nick Cheek

Average house prices in the UK saw a 1.7% annual increase in June to £287,546, government figures showed.

Data from the Office for National Statistics (ONS) showed that this was softer than the 1.8% year-on-year rise recorded in May. 

While average house prices were £5,000 higher than they were a year ago, values were also lower than the November peak. 

On a monthly basis, house prices rose by 0.7%. 

James Forrester, managing director of Barrows and Forrester, said: “Property values are standing firm, but it’s not the price being paid in the current market that is the issue, it’s the fact that the number of sales taking place has reduced considerably.  

“This means those looking to sell are sitting on the market for far longer before they can secure a buyer, but despite this, we’re yet to see them slash their asking price expectations in order to speed the process along. As a result, those with the patience to persist with their plans to sell are doing so for a robust price.” 

Nathan Emerson, CEO of Propertymark, said: “Even though house prices have fallen year-on-year, this does not compare to the dramatic price rises that we experienced last year. As house prices begin to steady, and with recent rises in wages, houses are becoming more affordable while equity is remaining stable.”  

Regional differences 

In England, there was a 1.9% yearly rise in the average house price to £306,447, which also represented a 0.9% monthly increase. 

Regionally, house prices in the North East saw the strongest growth with a 4.7% annual rise to £161,034. The weakest growth was recorded in London where average house prices declined by 0.6% annually to £527,979. 

Sarah Coles, head of personal finance at Hargreaves Lansdown, said other regions may follow London’s suit. 

She added: “London is setting a fashionable trend that the rest of the UK may be doomed to follow. House prices in the capital have fallen in the year to June – for the first time since the market was effectively closed at the start of the pandemic.  

“The country as a whole clung onto positive growth of less than two per cent over the past 12 months, and the outlook for the coming months looks fairly grim.” 

Average house prices in Wales were 0.6% higher than last year at £213,477 and 0.2% on the previous month. 

In Scotland, there was little annual change to the average house price which came to £189,424. Compared to May, this was a 0.4% decline. 

In Northern Ireland, where house price changes are recorded on a quarterly basis, average values had risen by 2.7% annually to £173,898. 

Property and buyer type 

Terraced homes, along with flats and maisonettes, saw the smallest annual price change with a 0.8% rise apiece to £234,373 and £231,037 respectively. Semi-detached properties rose by 2.2% to £279,059, while detached homes increased in price by 2.3% on average to £451,157. 

First-time buyers paid £239,589 on average for their homes, 1.5% more than they would have done last year. Similarly, former owner occupiers paid 1.7% more at an average of £336,257. 

Emma Hollingworth, managing director of mortgages at MPowered Mortgages, said: “With mortgage rates having fallen in recent weeks, and private sector pay growing at record levels, a dramatic fall in house prices is looking more and more unlikely.  

“We can also expect inflation to fall further, allowing first-time buyers to increase the amount of money they can affordably borrow.”