House price growth ticked up to 8.7 per cent in the year to June, official figures have shown. The figure was its highest since October 2014 – although it only included one week of The Brexit Effect.
The figures, published by the Office for National Statistics (ONS), was up from 8.5 per cent in May, and eight per cent in April.
The average house price hit £214,000 in June, £17,000 more than in June 2015, and £2,100 higher than in May.
Although uncertainty over Brexit had been blamed for (comparatively) muted house price growth in the months leading up to the referendum, the figure suggested buyers were reasonably confident of an outcome they could work with.
However, the data only included a week's worth of data after the referendum. That said, figures published earlier this month by Halifax suggested although prices fell between June and July, property values in the three months to July were up 8.4 per cent. So it's all a bit confusing.
Separate figures seem to suggest the capital has been hit hardest by the vote – yesterday Rightmove said the average asking price for homes in the capital has fallen 2.6 per cent in the past four weeks, although it also said prices had decreased 1.2 per cent nationally. Basically, no one can agree – and today's data adds to the confusion.
“June was a defining month in British history as the country voted to leave the European Union," pointed out Jeremy Duncombe, director of Legal & General Mortgage Club.
"This momentous decision was initially met with uncertainty and unpredictability across the markets. For this reason it comes as no surprise that house prices experienced a flattening in June compared to May. Despite this softening, it is crucial to remember that annually, house prices are still continuing to climb."