House prices up 1.3% last month 'but far too early to see referendum impact'

Average house prices in June rose 1.3 per cent but as the shock Brexit result was not known until late in the month the impact of the referendum cannot yet be seen.

That is the view of Martin Ellis, the housing economist at the Halifax and author of its latest house price index.

That index says prices in the three months to June were 8.4 per cent higher than in the same period of 2015. It also says the average price of a home in Britain is now £216,823. 

“There is evidence that the underlying pace of house growth may be easing. House prices in the three months to June were 1.2 per cent higher than in the previous quarter; down from 1.5 per cent in May. The annual rate of growth fell from 9.2 per cent in May to 8.4 per cent; the lowest since July 2015” explains Ellis.

"House prices continue to increase, albeit at a slower rate, but this precedes the EU referendum result, therefore it is far too early to determine any impact since” he says.

Jeremy Leaf, a former RICS residential chairman and north London estate agent, says despite the three-month slowdown the figures show “surprising resilience in the period immediately following the increase in stamp duty, leading up to the referendum” and insists a shortage of stock and modest transaction levels will continue to underpin prices. 

Mark Harris, chief executive of mortgage broker SPF Private Clients, says lenders have been “slashing already-cheap mortgage rates further still” in a bid to encourage borrowers.