House prices stall in June but annual picture remains solid

Ben Southwood
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AFTER six months of growth, <a href="/house-prices">house prices</a> inched down in June, according to a report released today by LSL Property Services.

The average UK house price crept down to £224,102, a 0.1 per cent fall on the month, said LSL. On an annualised basis, however house prices were up three per cent.

“Despite the recession and the ongoing financial crisis abroad, house prices have seen a period of steady annual inflation,” said director David Newnes.

The report reinforced the trend of regional disparity, with London and the south east increasingly divergent from the rest of England and Wales.

“Prices in ten boroughs of the capital reached record highs, with the average London house price outstripping the national average by more than £185,000,” said Newnes.

This came after the Council of Mortgage lenders reported yesterday that lending had rebounded significantly in May after a lacklustre April.

The number of house purchase loans soared 33 per cent to 48,300, while their value exploded 36 per cent to £7.2bn according to the industry body’s data.