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UK house price growth slows to 11-month low

UK house prices rose by 7.8% annually in June as growth slowed sharply in the face of pressure on households and rising interest rates, new figures show (Yui Mok/PA)
UK house prices rose by 7.8% annually in June as growth slowed sharply in the face of pressure on households and rising interest rates, new figures show (Yui Mok/PA)

UK house prices rose by 7.8% annually in June as growth slowed sharply in the face of pressure on households and rising interest rates, according to official figures.

The Office for National Statistics (ONS) revealed that growth pulled back from 12.8% in May.

The latest figure represented the weakest growth since July last year.

ECONOMY House
(PA Graphics)

Property price increases partly slowed year on year due to a jump last June as prospective buyers sought to strike deals ahead of the end of the stamp duty holiday.

The ONS said the average house price was £286,000 in June, representing a £20,000 increase against the same month last year.

In England, average house prices increased by 7.3% to £305,000 over the year.

In Wales, the average prices grew 8.6% to £213,000, while in Scotland prices rose 11.6% to £192,000, and in Northern Ireland they increased 9.6% to £169,000.

ONS house prices statistician Ceri Lewis said: “While annual growth slowed, house prices continue to increase and average prices have now reached record levels in England, Wales and Scotland.

“Rents continue to climb across the country, with sustained pick-up in London which saw its strongest growth since the beginning of 2017.”

The statistics body also revealed in separate data that private rental prices paid by tenants grew by 3.2% in the 12 months to July.

It represents an acceleration from 3% in June and is the largest annual growth since January 2016.

Nick Leeming, chairman of estate agent Jackson-Stops, said: “On the same day that inflation has reached double figures, a slight sense of restraint is starting to creep into the property market.

“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.

“For now, an expected seasonal dip in activity over the summer months should remain front of mind before we declare a market adjustment.”