UK house price growth slows in July, ONS reveals

UK house price growth slowed in July following Britain’s vote to leave the European Union, official data showed on Tuesday.

Prices in July rose an annualised 8.3% to an average of £217,000, compared to an upwardly revised year-on-year increase of 9.7% in June, the Office for National Statistic said.

Compared to month ago, prices rose by £1,000 in July.

England registered the most growth among the UK countries with house prices rising 9.1% to an average of £233,000. Wales saw house prices increase 4% on the year to £145,000 while Scotland prices climbed 3.4% to £144,000. The average price in Northern Ireland is £123,000.

London continued to drive gains in England with the average house price at £485,000, up 12.3% on the previous year.

England’s South East saw an 11.9% increase in average house prices to £313,000 while prices in the East jumped 13.2% to £274,000.

The lowest average price was in the North East at £130,000, a 5.8% rise compared to a year ago.

Rob Weaver, director of investments at property crowdfunding platform Property Partner, said: “The housing market is emerging from its traditional summer slumber, with mounting evidence suggesting that predictions of a post referendum house price crash were distinctly premature.

“The resilience of the UK housing market is rooted in the structural mismatch between supply and demand. While activity lately has been subdued, that imbalance has been maintained. Some potential buyers got cold feet following the Brexit vote, but sellers too withdrew from the market, resulting in a further drop in the stock of homes available for sale.”