House prices rise ‘out of reach’

HOUSE prices in the UK increased by £10,000 in the past year on average, according to official figures, with estate agents warning that affordability of houses was reaching “crisis point”.

The average property price in June was £223,257, compared with £214,000 in June 2016, the Office for National Statistics said. On a month-by-month basis, house prices were up nearly £2,000 on average.

Although the speed of growth has marginally slowed, with house prices increasing by 4.9pc in the year to June compared to 5pc in the year to May, the ONS said growth had stayed flat in 2017 at around 5pc. Paul Smith, chief executive of London-based estate agent Haart, said the price rise had caused a 20pc dip in first-time buyer registrations in its branches in the past year.

“Along with consumer price hikes and falling wage growth, unaffordability is reaching crisis point,” he said.

The biggest rise was in the East of England, where average prices climbed 7.2pc to £286,623. There was similar growth, of 7.1pc, in the East Midlands.

Prices in the North East saw the smallest annual growth, at 2.5pc, while prices in London were up 2.9pc over the year. On a monthly basis, the average London house price fell by 0.7pc in June, to £481,556.