17 Aug

Average property prices on the up

Average property prices on the up

Property prices rose by 8.7 per cent during June, according to the latest government figures.

The Office of National Statistics (ONS) shows the average cost of a home in the UK is now £214,000 - £17,000 more than in June 2015 and £2,100 higher than in May 2016.

London remains the area of the UK that the highest average house price at £472,000. However, the capital no long has the highest annual growth, with the East of England showing a 14.3 per cent rise in values and London 12.16 per cent.

Prices were less buoyant in other areas, with the North East property market reporting a small 1.5 per cent increase over the past 12 months.

It is unlikely such figures will reflect any impact of the recent Brexit decision, so it is unclear if the move to leave the EU has had any effect on property transactions.

Richard Snook, senior economist at PwC, said: "We expect that the vote to leave the EU will have a significant impact on the housing market. In our main scenario, average UK house property growth will decelerate to around three per cent this year and around one per cent in 2017."

He added: "Cumulatively, our estimates suggest average UK house prices in 2018 could be eight per cent lower than if the UK had voted to stay in the EU."ADNFCR-1222-ID-801823703-ADNFCR

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