HOUSE PRICES UP BY 5.2% ANNUALLY

The Office for National Statistics (ONS) has released its latest house price figures, showing a monthly increase of 1.8% in July.

In the year to July, prices rose by 5.2%, down from growth of 5.7% in the year to June.

Around the UK, prices increased by 5.6% yearly in England, by 0.3% in Wales and by 7.4% in Northern Ireland.

However, prices dropped by 1.3% annually in Scotland.

Prices in London rose by 5.5% in the year to July, up from 5.3% in the year to June, but down on the national average.

Excluding London and the South East, prices grew by 4.4%.

The ONS reports that the increases in England were fuelled by an annual rise in the East, of 8.3% and in the South East, of 6.7%. In the capital, the average house price was £525,000 in July, contrasting to the average price in the North East of £156,000. The average mix-adjusted house price in England was £295,000, £173,000 in Wales, £154,000 in Northern Ireland and £196,000 in Scotland. The average UK mix-adjusted price excluding London and the South East was £215,000.

“Not addressing our dramatic shortage of homes is pushing house prices higher and higher, and a stable home further out of reach for millions of young people and families. Instead, they’re trapped in expensive and insecure private renting, or stuck in childhood bedrooms.” – Campbell Robb, Chief Executive of Shelter 

“Current Government schemes, like Help to Buy or Starter Homes, don’t help the ordinary families on average wages who are struggling to keep up with sky-high housing costs. “The autumn spending review is the Government’s last chance to show they’re serious about turning around the housing crisis, by investing in the genuinely affordable homes we desperately need.”1

However, the ONS data, taken from mortgage figures, continue to differ from Land Registry statistics, which put the average house price at £183,861 – more than £100,000 less than the ONS mix-adjusted average. The ONS says that the difference is due to Land Registry using a repeat sales methodology and including cash sales. 

A spokesperson claims that the ONS and Land Registry are working together to develop a joint house price index that will replace the current two in mid-2016.1 http://www.propertyindustryeye.com/house-prices-rise-by-5-2-in-year/