West Midlands recorded the fastest year-on-year increase in house prices in the UK, according to Halifax, with prices rising 7% in the region in the second quarter.

This is compared to an overall UK rise of just 2.1%, down from 2.4% in quarter one, with Scotland and Wales both outperforming the average 3.7%.

Three of the 12 UK regions experienced a drop in house prices, led by Yorkshire & Humber where prices fell by 3.1%.

Capital gains

Average prices in London ticked up 0.6%, the first rise in the capital since the third quarter of last year.

The average UK house price now stands at £227,494, up £4,583 over the last year.

Tim Moore, associate director at IHS Markit said: “The latest figures confirm a further cooling of the UK housing market heading into the summer, with annual price inflation easing to its weakest since the start of 2013. Affordability constraints, the prospect of higher interest rates and heightened economic uncertainty all appear to have held back house prices in the second quarter of this year.

“A wide regional divergence in house price trends continued in quarter two, highlighting that market conditions remain overwhelmingly driven by local supply and demand fundamentals. Against this backdrop, the West Midlands recorded the fastest annual house price rise of any UK region, supported by a resilient regional economy, a tailwind from internal migration and future transport infrastructure spending.”