Average UK house price growth slowed in the year to July 2016, with prices up 8.3 per cent on an annual basis compared to 9.7 per cent in the year to June.
The average house price in July was £217,000, up £1,000 on the previous month and marking a £17,000 rise year-on-year, according to the Office for National Statistics.
Yorkshire Building Society Chief Economist Andrew McPhillips expects the slowdown in house price inflation to be short-lived.
“Looking to the long-term, we expect people’s desire to own a property, combined with the persisting lack of housing stock, to cause house prices to increase in the future,” says McPhillips.
“This will affect people across all tenures by both limiting the number of people who are able to own their desired home whilst also pushing up the cost of renting. It’s paramount that the UK significantly ramps up its housebuilding efforts in order to make homes more affordable in the long-term.”
Across the UK, house prices grew most signicantly in England, where they rose 9.1 per cent to an average of £233,000.
House prices in Wales rose 4 per cent in the year to an average of £145,000 and were up 3.4 per cent in Scotland to £144,000.
London continues to be the region with the highest average house price at £485,000, followed by the South East and the East of England, which stand at £313,000 and £274,000 respectively. The lowest average price continues to be in the North East at £130,000.
HomeOwners Alliance Director Katherine Binns says: “We are seeing signs of hesitancy among both buyers and sellers at the moment. We expect this to continue in the short term until there’s greater certainty around the economic impact of Brexit.
“Time will tell whether the recent Bank of England cut in interest rates will help to boost confidence and generate an increase in buyer and seller numbers in the autumn. However, despite this slowing in activity, tight supply is likely to keep upward pressure on house prices. So we’re not expecting a drop in the short term.”