You are here: Home - Mortgages - First Time Buyer - News -

House prices and rents continue steady growth

Written by: Owain Thomas
Average house prices in the UK have increased by 4.9% in the year to June 2017, according to the Land Registry.

This was down slightly from the year to May (5.0%).

The Land Registry noted that the annual growth rate has slowed since mid-2016 but has remained broadly around 5% during 2017.

The average UK house price was £223,000 in June 2017 – £10,000 higher than in June 2016 and £2,000 higher than last month.

A report last week from Oxford Economics warned that the UK should expect sluggish house price growth until 2021, with “house prices caught between a lack of traditional drivers of accelerating growth, but equally an absence of forces which have typically caused prices to fall”.

Former Royal Institute of Chartered Surveyors residential chairman and now north London estate agent Jeremy Leaf said: “These figures show a fairly stable market at a time when we might have expected more nervousness among buyers and sellers.

“What we are seeing on the ground is a determination to get on with property transactions even if that means negotiating harder to make sure they go through.”

Local variations

Of the four home nations, England saw the biggest increase in house prices (5.2%) with the average price at £240,000.

Northern Ireland saw an increase of 4.4% over the year to quarter two (Apr to June) with its average house price at £129,000.

Wales (3.6%) and Scotland (2.9%) saw more modest increases over the year, with averages homes in these countries costing £152,000 and £144,000 respectively.

The East of England (7.2%) and East Midlands (7.1%) both drove the house price rise with above 7% increases.

Meanwhile the North East saw the lowest annual growth where prices rose just 2.5% over the year.

London’s stagnation also continued as prices in the capital rose by just 2.9% over the last 12 months.

Rent stability

Private rental prices paid by tenants in Great Britain rose by 1.8% in the 12 months to July 2017 – unchanged for the fourth consecutive month.

In England, private rental prices grew by 1.9%, Wales saw growth of 1.3% while Scotland saw rental prices increase by 0.2%.

London private rental prices grew by 1.5% in the 12 months to June 2017.

Rental prices for Great Britain excluding London increased by 2.0% in the 12 months to July 2017, also unchanged from June 2017.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
Inflation lower than expected, but rail fares still rising sharply

Despite lower-than-expected CPI inflation, commuters will be hit with a 3.6% rise in fares.