House Prices Rise 3.4% in UK

Average UK house price rises 3.4% in June 

Average house prices in the UK increased by 3.4% in the year to June, climbing from 1.1% in May, according to the latest UK House Price Index.

On a non-seasonally adjusted basis, average UK house prices saw a rise of 2.7% between May and June, compared with a rise of 0.4% during the same period in 2019.

The data showed that house price growth was strongest in England where prices rose by 3.5% over the year to June. 

The highest annual growth within the English regions was in the East Midlands, where average house prices grew by 4.5%, while the lowest annual growth was in the North East, where the average price saw a rise of 1.7% over the year to June.

Around the rest of the UK, the index revealed that Scotland saw house prices increase by 2.9% in the year to June, while house prices in Wales increased by 2.8%. Data available for Northern Ireland showed that house prices increased by 3.0% over the year to the second quarter of 2020 (April to June).

The figures took the the average price of a property across the whole of the UK to £237,834 in June.

Commenting on the latest data, Gatehouse Bank chief commercial officer, Paul Stockwell, said: “This is the first comprehensive look at the performance of the UK property market following lockdown, building on previous indices and reports of home finance application numbers edging closer to pre-pandemic levels.

“The 3.4% year on year rise in prices shows just how quickly buyers and sellers pushed on with their delayed transactions when the market reopened in June, driving demand even before the stamp duty discount was announced.

“The East Midlands and the North West have performed particularly strongly. Meanwhile London recorded an annual 4.2% rise, despite suggestions many are leaving the capital in search of larger properties further afield where they can work from home.

“We can be optimistic that these shoots of recovery are just the beginning. Lenders have been exceptionally busy with an abundance of mortgage applications since the stamp duty announcement in early July incentivised buyers, and that healthy demand seems to be persisting as we enter the autumn.”

Trussle head of mortgages, Miles Robinson, added: “With many pushing on with their delayed transactions following the property market suspension, and the announcement of the stamp Duty holiday, it’s no surprise that house prices are rising.

“But, as many in the industry have warned, it’s likely that this growth will be temporary. We’re facing a challenging economic climate that will likely stifle demand and cause a dip in house prices.

“These pressures will only be compounded by a mortgage market that some are already finding difficult. First-time buyers in particular are facing increased scrutiny from lenders, tighter criteria and a shrinking range of high LTV products. While lenders are right to be cautious during times of uncertainty, we’d urge the industry to ensure the market remains accessible to all and for lenders to reassess their offering of higher LTV mortgage products.”

For the right advice contact the independent experts at Planit Mortgages.
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