UK house prices show £17,000 rise for June
House prices increased by £17,000 in the year to June, continuing the upward trend in property values across the UK despite fears of a Brexit downturn.
A typical property in the UK cost £214,000 in June, marking an 8.7% increase from the same month last year, figures from the Office for National Statistics (ONS) showed. That compares with an 8.5% rise in the year to May.
On a month-to-month basis, June prices increased £2,100.
The figures are in the ONS's first housing report that takes into account the initial seven-day period following the EU referendum.
It follows a report by property website Rightmove earlier this week which showed that home prices in England and Wales in August saw their biggest fall since November last year.
England saw the biggest increase in prices, up 9.3% to average £229,000, with a 4.9% jump to £145,000 in Wales, and a 4.6% rise to £143,000 in Scotland. The lowest average price was found in Northern Ireland at £123,000.
London's prices trumped the regions, with the average home costing £472,000.
John Goodall, chief executive and co-founder of peer-to-peer platform Landbay, said: "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% in June alone."
Mr Goodall added that all eyes will be on next month's ONS figures, which are expected to show a slight slowdown for July.
Richard Snook, a senior economist at PwC, stressed that the June figures only cover the seven days of market activity after the vote to leave the EU on June 23, saying: "It is too early to draw any firm conclusions from this set of data."
Under PwC's estimates, UK property market prices will slow to 3% for the full year of 2016 and to 1% next year. But 2018 could prove to be a buyer's market, with the consultancy estimating that houses will cost 8% less than if Britain had voted to stay in the bloc.
Home-buyers could find themselves in an even stronger position after the Bank of England earlier this month launched a new stimulus package that is meant to drive down interest rates and help increase lending to both consumers and businesses.
Interest rates at the August Monetary Policy Committee meeting were cut to a record low of 0.25%, marking the first change since the peak of the financial crisis in March 2009. There is also speculation that the Bank of England could cut rates further if there are further signs of an oncoming recession after the EU referendum.
A report by Halifax earlier this month showed house prices dropped 1% in July but said it was too early to tell if the referendum was responsible.