26 Jul

ONS: Average house prices on the rise

ONS: Average house prices on the rise

House prices in the UK rose by 8.1 per cent in the 12 months to May, according to figures from the Office of National Statistics (ONS).

Data shows the average house price during the month was £211,000 - £16,000 higher than the previous May and £2,400 more than in April 2016.

Scotland saw a four per cent rise in the average price over the last year to £141,000, while Wales saw a 3.6 per cent increase to see the average home now costing buyers £143,000.

It is thought ongoing low interest rates and increasing employment, as well as wage inflation has helped to support the UK housing market in recent months.

However, the introduction of the recent stamp duty changes and cuts to mortgage interest relief may have had some impact on the growth, but the market could recover.

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “Prices appear to be holding and even increasing in many areas due to the fundamental imbalance in supply and demand.

“Following recent Bank of England announcements on softening monetary policy, it looks likely home owners mortgage interest payments will remain historically low for much longer than expected. This could help continue to support prices over the next 12 months,” he added.ADNFCR-1222-ID-801822424-ADNFCR

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