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House price growth remained steady in June, despite pre-Brexit uncertainty

The latest UK House Price Index for June, which includes data for the week after the Brexit vote, shows an annual house price rise of 8.7%.

This means the average cost of a property in the UK hit £213,927 in June, after increasing by 1% since May. 

Annual growth in England stood at 9.3% during June, while growth in Wales was recorded at 4.9%.


In Scotland annual growth was 4.6% and figures for Q2 2016 show annual growth of 7.8% in Northern Ireland.

The best monthly growth was recorded in Northern Ireland (3.8%), followed by Scotland (2.7%), Wales (1.2%) and then England (0.8%).

The East of England has now overtaken London as the region with the highest annual property growth at 14.3%.

In June, the capital recorded annual house price growth of 12.6%, bringing the average property value up to almost £475,000.

The lowest annual house price growth, meanwhile, was recorded in the North East at just 1.5%.

The highest monthly growth was recorded in the South East at 1.5%, while the most significant monthly price falls were recorded in the West Midlands and the North East, both at -0.2%.

John Goodall, chief executive and co-founder of Landbay says that Brexit uncertainty alone was not enough to derail the UK's housing market in June.

"High demand drove the uplift in prices, with mortgage lending volumes jumping 16% in June alone," he says. 

"Of course all eyes will be on next month’s figures, and early indications suggest house prices growth cooled slightly in July."

It's still too early to see the effect of the referendum vote, according to Ian Thomas, co-founder and director of LendInvest.

He says, though, that one area where there is certainty is on the issue of supply.

"We simply aren’t building anywhere near enough homes to meet demand, and the biggest housebuilders are taking a cautious tone about doing more since the Brexit vote," says Thomas.

"The Government must throw its weight behind measures to support homebuilders of all sizes if we are to tackle the housing crisis.”

Meanwhile, Graham Davidson, managing director of Sequre Property Investment, says that it's encouraging to see that house price growth didn't stall in the run-up to the vote on June 23.


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