But while the Office for National Statistics (ONS) figures show that the annual rate of house price growth nudged up slightly to 5.7% in June, this disguises wide regional variations. Prices have leaped by 9% in Northern Ireland over the last 12 months, while in Scotland they fell by 0.6%.
Annual growth in London now stands at 5.3%, when as recently as August 2014 it was running at just under 20%.
The average cost of a UK home now stands at £277,000, compared with £274,000 in May. However, the typical price in London is £513,000 – well over three times the equivalent figure for north-east England, which is £156,000.
The ONS said its index hit a new record in June, beating the previous month’s high. The average house price now stands at £290,000 in England, £169,000 in Wales, £154,000 in Northern Ireland and £192,000 in Scotland. This is the first annual fall in Scottish prices for almost two years.“Following relatively strong growth during much of 2014, the rate of house price growth appears to have moderated in recent months,” said the ONS, adding: “Despite this moderation, house price growth remains high relative to the movement of prices in general, likely reflecting a mismatch between strong demand and relatively weak supply throughout much of the UK.”
Roger Harding, Shelter’s director of campaigns, said: “From families trapped in expensive and insecure private renting, to young people stuck in their childhood bedrooms, a stable future is spiralling further and further out of reach for millions.
“Piecemeal schemes may help a lucky few, but the only way for the government to turn this crisis around is to urgently invest in the genuinely affordable homes we need. The autumn spending review is their last chance to put real money towards this, and show they’re serious.”
Brian Murphy, head of lending at Mortgage Advice Bureau, a broker firm, said: “In June there were no shocks or surprises for homebuyers with annual house price growth increasing by just 0.1 percentage point from the 5.6% seen in April and May. Compared to this time last year, when buyers were faced with annual house price rises of 10.2%, conditions are looking far more affordable.”
He added: “Growth is also no longer restricted to the south, with a 9.2% annual rise in the east of England being the main driving force behind these figures. At the same time, price pressure in the capital has eased remarkably since last year.”