Property prices defy gloomy economic outlook

HOUSE PRICES are about £10,000 higher on average than a year ago – but the annual pace of growth is slowing, official figures show.

Average house prices across the UK increased by 4.9 per cent in the year to June, down from five per cent growth in the year to May, according to figures released jointly by the Office for National Statistics (ONS), Land Registry and other bodies.

Bucking the general upward trend, average house prices in the City of London have plunged by 20.3 per cent over the past year – making it the weakest-performing local district in the UK for annual price growth in June. The average house price in the City of London in June was £724,000.

The report said across the UK annual growth rate in house prices has slowed since mid-2016 but has remained broadly around five per cent this year so far.

The ONS said the average UK house price was £223,000 in June – around £10,000 higher than in June 2016. Property values increased by 0.8 per cent between May and June.

England continues to be the main driver of house price growth, with prices increasing by 5.2 per cent over the year to June to reach £240,000 on average.

Within England, the pace of price growth over the 12 months to June ranged from increases of 7.2 per cent in the East of England and 7.1 per cent in the East Midlands to, at the other end of the spectrum, 2.5 per cent in the North East and 2.9 per cent in London.

Jeremy Leaf, north London estate agent and former residential chairman of the Royal Institution of Chartered Surveyors (Rics), said: “What we are seeing on the ground is a determination to get on with property transactions even if that means negotiating harder to make sure they go through. Looking forward we don’t expect to see any significant changes but it is a good time to do business when expectations are relatively flat and the market is left to more serious buyers and sellers.”