Yahoo Finance UK house price growth slows to 11-month low
UK house prices rose by 7.8 per cent in the year to June as growth slowed sharply in the face of pressure on households and rising interest rates, according to official figures.
The Office for National Statistics (ONS) revealed that growth pulled back from 12.8 per cent in May.
The latest figure represented the weakest growth since July last year.
Property price rises partly slowed year-on-year due to a jump last June as prospective buyers sought to strike deals ahead of the end of the stamp duty holiday.
Commenting on today’s rental price data for July and house price data for June, ONS house prices statistician Ceri Lewis said: (1/2)
⬇️ pic.twitter.com/AlcOj6GT5q— Office for National Statistics (ONS) (@ONS) August 17, 2022
The ONS said the average house price was £286,000 in June, representing a £20,000 increase against the same month last year.
In England, average house prices increased by 7.3 per cent to £305,000 over the year.
In Wales, the average prices grew 8.6 per cent to £213,000, while in Scotland prices rose 11.6 per cent to £192,000, and in Northern Ireland they increased 9.6 per cent to £169,000.
ONS house prices statistician Ceri Lewis said: “While annual growth slowed, house prices continue to increase and average prices have now reached record levels in England, Wales and Scotland.
“Rents continue to climb across the country, with sustained pick-up in London which saw its strongest growth since the beginning of 2017.”
Ceri Lewis continued: (2/2)
⬇️ pic.twitter.com/LZZsgWfU4m— Office for National Statistics (ONS) (@ONS) August 17, 2022
The statistics body also revealed in separate data that private rental prices paid by tenants grew by 3.2 per cent in the 12 months to July.
It represents an acceleration from 3 per cent in June and is the largest annual growth since January 2016.
Nick Leeming, chairman of estate agent Jackson-Stops, said: “On the same day that inflation has reached double figures, a slight sense of restraint is starting to creep into the property market.
“The impact of the higher cost of borrowing and less consumer spending power is likely to gradually filter through over the rest of the year.
“For now, an expected seasonal dip in activity over the summer months should remain front of mind before we declare a market adjustment.”
