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House prices rose 8.7% in year to June

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The average UK house price rose by 8.7 per cent to £213,927 in the year to June, according to the latest Land Registry House Price Index.

House prices rose 1 per cent month-on-month compared to May, where the average house cost £211,864.

In England the average house price rose 9.3 per cent in the year to June, to £229,383.

Welsh house prices increased 4.9 per cent to £145,238 over the period. Meanwhile, in Scotland, the average price increased by 4.6 per cent over the year to £143,000.

Average house price, by UK country, January 2005 to June 2016

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London was the city with the biggest rises, at 12.6 per cent, meaning the average property value in the capital is £472,204.

Landbay chief executive John Goodall says: “Brexit uncertainty alone was not enough to derail the UK housing market in June, as prices continued to rise steadily. High demand drove the uplift in prices, with mortgage lending volumes jumping 16 per cent in June alone.

“Of course all eyes will be on next month’s figures, and early indications suggest house prices growth cooled slightly in July, but if we do see an impact of the Brexit decision it will take some time to surface.

“What we do know is that the fundamentals of the property market are built on pretty immovable foundations; people always need a home. A growing UK population and record low mortgage rates will swell demand, and efforts to tackle the supply side are moving at a snail’s pace although Theresa May has suggested housebuilding is high on the agenda.

“All this will continue to drive up prices, and make it even more critical that the UK has a healthy and accessible buy-to-let market to support those that choose not to or cannot buy a property outright.”

Haart chief executive Paul Smith says: “Today’s monthly house price index is a far cry from the house price collapse forecast in the run up to the EU referendum, as prices kept on rising in June.

“It’s no surprise that the pace of growth started to slow a little over the summer after an inflation-busting 8.7 per cent increase on June last year, not just because of the referendum but also due to the impact of April’s buy-to-let stamp duty changes and the more fundamental issue of affordability.”

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