Average UK house price rises by £5,000 higher than year prior but remains below recent peak
Average UK house prices increased by 1.7 per cent in the year to June
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Average UK house prices increased by 1.7 per cent in the 12 months to June 2023, down from 1.8 per cent in May 2023, according to official figures.
The average UK house price was £288,000 in June 2023, £5,000 higher than 12 months ago, according to the UK House Price Index (HPI) published by the Office for National Statistics today.
However, despite the rise, the average UK house price is £5,000 below the recent peak in November 2022.
Aimee North, the head of housing market indices at the Office for National Statistics, said: “Annual house price inflation, measured using final transaction prices slowed again in June, but the fall was gentler than we have seen in previous months."
London saw the lowest annual house price inflation with a decline of 0.6 per cent
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The North East of England saw the highest jump in average house prices of 4.7 per cent.
London saw the lowest annual house price inflation with average prices declining by 0.6 per cent.
Ms North added: “There was another record annual increase for UK rents in the latest month.
“London rental prices rose steeply to their highest annual rate since records began in 2006. The lowest annual inflation was in the North East.”
Property expert Jonathan Rolande said the surprise was not that house price inflation was down compared to May 2023, but it was such a small fall.
He told GB News: "With so much talk about a crash in house prices, the surprise here is not that prices are down, but that they are only down by such a small amount.
"It is interesting to note that we are at a midway point – the average home is £5,000 more than it was a year ago, but also £5,000 down from its peak in November."
Mr Rolande warned people not to celebrate too soon, as a "worsening picture" is expected.
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He said: "Optimists beware – these figures are based on completions of sales that were agreed months before. The market is tough and future ONS reports will inevitably paint a worsening picture."
Myron Jobson, senior personal finance analyst at interactive investor, said: “House prices remain on a downward trend, but they are not falling fast enough to make the numbers work for many would-be buyers who have been priced out of the market.
“The housing market typically ratchets up in summer, when buyers emerge in the warmer weather.
"But this year, buyers haven’t raced out of the traps, with the affordability squeeze from high mortgage rates and high inflation keeping many at bay."