House prices were up in June despite Brexit worries
UK house prices grew by 0.6 per cent in the three months to June, despite concerns around the EU referendum – but London house prices fell 1.4 per cent between May and last month.
Prices across Britain were up by six per cent in June 2016 compared with June 2015, according to the Reeds Rains monthly house price index, which identified the east of England as the new regional hot spot for house price growth, with an increase of 9.4 per cent year-on-year.
The average UK house sale price has now reached £293,444.
The figures also showed the number of transactions between March and May increased by eight per cent compared with the same period last year – but Reeds Rains highlighted that the numbers reflect the "huge market surge" in March where buyers looked to complete purchases ahead of April’s Stamp Duty changes.
“Brexit will undoubtedly have a wide range of consequences for the housing market, however, it would be wrong to assume that these will all be negative," said Adrian Gill, director of Your Move and Reeds Rains.
"Exactly how the implications will play out in the sector over the coming months is yet to be seen, and whist London is likely to feel the effects more acutely, it is important to remember that the outlook is not all doom and gloom. Already lower interest rates promised by the Bank of England to stave off any slowdown are set to ease affordability and support prices."
The Bank is widely expected to announce today that it will cut rates for the first time in seven years.
Gill added: “What is clear is that the impact of April’s Stamp Duty increase has now largely played out, and there’s little evidence to suggest it has significantly hit investor appetite: first time landlords seem no less common and there’s new interest in mixed commercial and residential purchases, such as flats over shops that escape the increase.
“Ultimately, with interest rates set to remain lower for longer, the Bank of England reducing banks’ capital requirements and changes in government imminent, the short-medium term outlook for the housing market could well remain positive after all.”
The figures from Reeds Rains follow this morning's news that house prices in London are set to suffer a more severe blow than any other part of the UK, following the Brexit vote.