Despite rising inflation, housing prices have continued to grow since last year, official figures have revealed.
In June, the average UK house price was £286,000, a £20,000 increase on last year, according to the latest
figures from the Office for National Statistics today.
In London, house prices have seen 6.3 per cent growth in the last 12 months, 1.5 per cent lower
than the national average of 7.8 per cent.
Prices in London remain the highest in the country, with the average price hitting a new high of
£538,000 in June.
The borough with the most growth was Kensington and Chelsea which saw a 12 per cent increase,
representing a £148,438 rise. Camden saw the lowest increase, at just 1.9 per cent, an average rise of only £15,260.
Jason Tebb, CEO of property site OnTheMarket.com said that “despite sizeable headwinds, including soaring inflation and the prospect of further interest rate rises, those most serious about transacting are
getting on with the business of moving.”
Across England the Eastern regions did best, with the East, South East, and East Midlands all getting above 8 per cent growth, with the Northern regions of Yorkshire and The Humber, North west, and the North East in particular all struggling to break 7 per cent growth.
Nationally, this growth is down from the 12.8 per cent seen in May.
Nick Leeming, chairman of Jackson-Stops, added: “On the same day that inflation has reached double figures, a slight sense of restraint is starting to creep into the property market.”
Looking forward, “the impact of the higher cost of borrowing and less consumer spending power is
likely to gradually filter through over the rest of the year,” he continued. “The Autumnal months will provide the market with a clearer indication of how buyers will respond to an increasingly uncertain financial environment.”
Rental prices have also continued to increase, with private rental rates growing by 3.2 per cent over
The East midlands saw the largest growth spike nationally, with 4.3 per cent, whilst London saw the
lowest at 2.1 per cent. Despite this, London has experienced the strongest growth it has had in private renting rates since January 2017.