Average UK house prices up 8.7pc year on year

houses_2946635bAverage house prices in the UK increased by 8.7% in the year to June 2016, up from 8.5% in the year to May 2016, according to the Office of National Statistics (ONS) report. The average UK price was £214,000 in June 2016, which is higher than June 2015 and £2,100 higher month on month. The report says that strong house price growth in June is the contribution of the increase in UK house prices came from England. London continues to be the region with the highest average house price at £472,000. And also the expert says that it was too early to determine as the EU results are yet to take effects in market.

Andrew McPhillips, chief economist at Yorkshire BS says: “Increased house price growth in June could also have been due to the new stamp duty rate for buy to let purchasers, this caused landlords to rush the market to beat the new rate, which resulted in a lack of supply after the new tax came into force in April, consequently intensifying the supply shortage. Although there are fluctuations in demand in the short term due to uncertainty following the EU, the underlying lack of supply will remain as a constraint on market activity and is likely to push up house prices in the long term.”

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