UK average house price soars by £17,000 in 12 months

Property values have also increased by £1,000 compared with previous month

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The average UK house price has climbed by £17,000 in a year, continuing a "strong" run of growth, according to an official report.

The typical property value was around £217,000 in July, marking an 8.3% year-on-year increase, the Office for National Statistics (ONS) said.

Property values have also increased by £1,000 compared with the previous month.

While the 8.3% rate of annual growth is a slowdown compared to a rate of 9.7% recorded in June, it continues "the strong growth seen since the end of 2013", the report said.

The average house price in England now stands at £233,000, while in Wales it is £145,000, in Scotland it is £144,000 and in Northern Ireland it is £123,000.

Across the regions of England, London continues to have highest average house price at £485,000, followed by the South East and the East of England, where house prices stand at £313,000 and £274,000 respectively. The lowest average price continues to be in the North East at £130,000.

The East of England recorded the strongest annual growth, with prices increasing by 13.2% in the year to July 2016. Growth in London also remained high at 12.3%, the ONS said.

The UK house price index said that despite the strong growth, there have been signs that some of the heat has been taken out of the market, with several indicators pointing towards weaker housing demand and supply in recent months.

On the demand side, the volume of lending approvals for house purchases fell by 5.1% in July 2016 compared to the previous month, continuing a downward trend since the start of the year.

Recent reports have pointed to a recent stamp duty hike for buy-to-let investors as well as the EU referendum leading to a quieter housing market.

Jeremy Leaf, north London estate agent and a former residential chairman of the Royal Institution of Chartered Surveyors, said: "It is surprising that the index does not record more of a slowdown in price growth.

"On the ground we are finding that people are showing more caution than this although there is an underlying determination to get on with moving. People are negotiating hard and we expect that to be reflected in future surveys."

Andrew McPhillips, chief economist at Yorkshire Building Society, said: "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.

"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."

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