ONS – Prices edge up by 0.9% in June
Average UK house prices rose by 0.9 per cent in the year to £230,292 in June, the latest figures from the Office for National Statistics reveal.
While the annual rate of growth was unchanged from May, the monthly increase of 0.7 per cent was slightly higher than the previous monthly rise of 0.1 per cent.
London was once again the worst hit by the slowdown with prices dropping 2.7 per cent to £466,824 over the year to June, although this was lower than May’s fall of 3.1 per cent.
Average prices in the capital have now fallen on an annual basis in every month since March 2018.
Looking at each of the countries in the UK, Wales saw the highest annual growth with prices up by 4.4 per cent to £163,768 in the year to June, while in Northern Ireland prices rose by 3.5 per cent to £136,767.
Scotland saw house prices increase by 1.3 per cent to £151,891 and in England prices rose by 0.7 per cent to £246,728.
MT Finance director Tomer Aboody, says: “Would-be buyers and sellers are still waiting for Brexit to be resolved.
“Whether it is hard, soft, or no Brexit, the important thing is that a decision is made so people can get on with things.
“Sales volumes are relatively similar to last year and the couple of years before that because Brexit indecision has been going on for so long.
“This will improve once a decision is made, and pent-up demand will be released.”
He adds: “Prices have fallen slightly in London but not dramatically so.
“This average figure masks significant falls at the top end, where prices have come off by 10 or 15 per cent.
“If we have a hard Brexit and the pound is badly affected, foreign buyers will come back into the market as they will be buying 20 or 30 per cent off market value with a much stronger Euro, Dollar or Yen against the pound.
“This is likely to push volumes and values up.”
North London estate agent and former Royal Institution of Chartered Surveyors residential chairman Jeremy Leaf says: “’We are finding that the mood among many homebuyers and sellers is matching that in Westminster.
“Decision-making has been put on hold until more clarity emerges which is reflected in very little movement for property prices this month.
“What is more concerning is the reduction in number and pace of transactions which are lower than this time last year with once again London acting as a drag on the rest of the market.
“Nevertheless, some are taking advantage of greater realism among sellers and on the plus side we have seen no evidence of widespread reductions on previously-agreed prices, or withdrawals.”
Source: Mortgage Strategy