UK house price growth slows in second quarter, data reveals

UK house price growth slowed in the second quarter amid worries over Brexit and an increase in stamp duty, data revealed on Tuesday.

House prices rose 1.8% on the quarter and 8.5% on the year in the three months to June, according to the Halifax House Price Index, which was recently taken over by Markit. It compared to growth in the first quarter of 2.9% on the quarter and 10.1% on the year.

The average property price in the UK rose to a record of £215,582 in the second quarter from £211,868 the previous three months.

London remained the more expensive area to buy, with the average price of a home near £450,000 in the second quarter.

However, prices were unchanged in the capital as the introduction of higher stamp duty in April and uncertainty in the lead up to the UK’s European Union referendum deterred buyers.

“This is the first time that prices have failed to rise in London since late 2012,” said Chris Williamson, chief economist at Markit.

“The second quarter stagnation still left house prices in the capital some 14.6% higher than a year ago, the highest annual rate of increase of all UK regions, but that’s down from 21.2% in the first three months of the year.”

Meanwhile, South East England followed London as the second most expensive area. Average house prices jumped 14% year-on-year and 2.8% quarter-on-quarter to £330,952 in the second quarter.

Northern Ireland had the cheapest average prices in the UK at an average of £119,000, down 2.0% on the quarter but up 3.5% on the year.

Prices in Scotland dropped 1.6% on the year and on the quarter to an average of £135,944. Wales house prices came to an average of £150,265 in the second quarter, down 5.5% on the quarter and 0.5% on the year.

Williamson said the housing market seems to have cooled. “However, the extent to which this is a reflection of Brexit worries or the increase in stamp duty in the Budget remains uncertain,” he said.