United Kingdom house prices rise 8.2%

Data from the new UK House Price Index, provided by the Land Registry, Registers of Scotland, Land & Property Services Northern Ireland and the Valuation Office Agency, show that monthly house prices have increased by 0.6% since March 2016.

Nonetheless, while the rate of inflation fell in April, prices were still £1,300 higher than in March, according to the new HPI.

'Year-on-year growth in prices then dipped slightly to 8.2 per cent in April from 8.5 per cent in March. House sales plummeted by 45.2% in April compared with March.

According to the new index, the average house price is £225,000 in England, £139,000 in Wales, £138,000 in Scotland and £118,000 in Northern Ireland.

'All of the talk about the Brexit vote and the uncertainty it brings to the property market has merit.

The North West saw the greatest monthly growth with an increase of 2.3%, but surprisingly the South West saw the most significant monthly price fall with a 2.8% fall.

Average London house prices have also been scaled back in the new index, with the typical price of a London home now put back under the half a million pound mark, at £470,000.

In England, the April data reveals an annual price increase of 9.1% which takes the average property value to £224,731.

"Work has been taking place over the past two years to develop a single, official HPI that reflects the final transaction price for sales of residential property in the United Kingdom", said a Land Registry spokeswoman.

'The biggest improvement to methodology (compared with current ONS and Land Registry indexes) is the use of additional property attributes data, in particular floor space of a property, in the modelling of house price data. We expect prices to rise in the remainder of the year, but at a less pronounced level than previous years due to macroeconomic weakness. "In addition to this, a combination of European Union referendum uncertainty and turmoil in global markets could weigh on price growth at least in the short term".

Andrew Bridges, managing director of Stirling Ackroyd, said: "A potential Brexit is producing jitters this June - and the London property market is the most vulnerable to this new anxiety".

These latest figures from the ONS offer further proof that the gap between supply and demand is continuing to push house prices upwards annually.

Property values across Britain continued to accelerate beyond the buying boom triggered as landlords and second home buyers rushed to beat the 1 April stamp duty hike deadline, figures show.

A recent survey from the Royal Institute of Chartered Surveyors, however, cast some doubt on the property market in London, particularly at the top end.

  • Neal Todd