House prices continued to rise post-Brexit, official figures show

House prices increased by 0.4% between June and July, according to the latest UK House Price Index.

The data for July, the month after the EU referendum, shows an annual price increase of 8.3%, bringing the average UK property value to a figure of £216,750.

In England, average annual growth was recorded at 9.1% in July, with a monthly rise of 0.5%.

Wales recorded an annual price increase of 4%, although average prices dipped by 1.8% between June and July.

The annual growth in Scotland was recorded at 3.4%, while in Northern Ireland it was 7.8%. Respective monthly growth figures for the countries were recorded at 1.3% and 3.8%.

The average property price in London in July was £484,716, thanks to annual growth of 12.3% and a monthly rise of 1% between June and July.

The East of England was the best performing region on an annual basis, with growth of 13.2% over the last 12 months.

Meanwhile, the North East recorded the best monthly growth figure of 2.3%.

The lowest annual growth was recorded in Yorkshire and the Humber (4.7%), while the West Midlands had the worst monthly performance (-0.8%).

The official figures show that overall home sales fell by 0.9% between June and July and remained below the levels seen in 2014, 2015 and before the stamp duty surcharge was introduced in April.

“Given this is the first month of data after Britain’s decision to leave the European Union, it is not surprising that house price growth saw a softening in July,” says Adrian Gill, director of Your Move & Reeds Rains.

“Even if sentiment is slightly more cautious, which is not necessarily a negative in this period of uncertainty, an annual comparison shows the market remains buoyant.” 

“The new government appears to have housing high on its agenda, and this is paramount if the UK is to see the vast number of new homes we need realised in order to ease this issue in the medium and long term,” he adds.

John Goodall, chief executive and co-founder of Landbay comments: “Between stamp duty changes and the EU referendum, 2016 was always going to be a year of two halves for the UK housing market.” 

“The first led to a flurry of house purchases, stoking up demand and prices in the process, but the second has yet to prove quite so dramatic.” 

“One thing the Brexit outcome has done for the housing market, is lead the Bank of England to cut interest rates, resulting in some of the lowest mortgage borrowing costs this country has ever seen.” 

“This will improve affordability for first time buyers, and take some of the sting out of house price increases.”

The full set of figures can be viewed here.