House prices continued their upward climb in July, according to the Office of National Statistics

Helen Cahill
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House price growth cooled in the month after the Brexit vote (Source: Getty)

House prices increased by 8.3 per cent in the year to July, according to the Office of National Statistics (ONS) - falling from 9.7 per cent growth in the year to June 2016.

The average UK house price increased to £217,000 in July 2016, a £17,000 increase on July last year. That made the average price £1,000 higher than in June.

House prices in England lead the way

The ONS said England was the main contributor to the growth in house prices, where there was 9.1 per cent growth in July. The average house price in England now stands at £233,000, rising to £485,000 in London.

Read more: House prices grow at slower pace in August

On a regional basis, house prices grew fastest in the East of England, with an annual growth rate of 13.2 per cent, followed by London, where they rose 12.3 per cent. In the South East, prices grew 11.9 per cent.

How commentators reacted

Andrew McPhillips, chief economist at Yorkshire Building Society, said: "House price growth slowed in July as people postponed their decision to get onto the property ladder until they can be more certain of the future of the UK economy. We expect the market to be volatile in the medium term, as any dips in house prices could be swiftly followed by an increase as prospective buyers look to make the most of lower prices."

"Given this is the first month of data after Britain’s decision to leave the European Union, it is not surprising that house price growth [softened] in July," said Adrian Gill, director of estate agents Your Move and Reeds Rains.

"Even if sentiment is slightly more cautious, which is not necessarily a negative in this period of uncertainty, an annual comparison shows the market remains buoyant."

Jeremy Duncombe, director at Legal & General Mortgage Club, said: "Today’s figures are further reassurance that the mortgage market has recovered from the period of uncertainty surrounding the vote to leave the EU. House prices continue to rise annually as more potential buyers saturate the market. However, it is important to remember that this can be seen as a tale of two (or more) cities, as the country is experiencing house price growth at drastically different rates.

Read more: House prices went up in August - but experts say the outlook is "clouded"

"Although London house prices are sky rocketing, this trend is not being replicated regionally. While the capital is experiencing double digit growth, house prices in areas such as Northern Ireland are growing, but remain around 15-20 per cent lower than they were prior to the 2007 credit crunch."

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