- Transaction numbers climb back to 2015 levels but Brexit looms large
- London house prices fall 1.4% (£8,400) month-on-month – largest fall since May 2011
House prices edged up last month, but uncertainty looms. After three months of falls, including a 0.9% dip in May, average prices in England and Wales saw a modest recovery, up 0.6%. By the end of June, prices were 6% higher than a year ago with the average house sale now £293,444. The impact of Brexit, though, has yet to be felt.
The outcome of the June 23 vote had little effect on the latest figures. Transactions in June were 13% lower than last year, but this was an improvement on May. Overall transaction levels are recovering after the slump that followed a rush to beat the 3% stamp duty surcharge on second homes and buy-to-let properties introduced in April. Price falls in the previous three months, likewise, followed significant rises at the start of the year, led by buy-to-let and pied-a-terre properties. Now increasing again, they nevertheless remain below trend.
Looking at regional variations, in May average house prices paid in the capital were down 1.4%. That’s the third successive monthly drop and the biggest in cash terms (£8,400) since May 2011. Nevertheless, while annual house price growth in Greater London is down from 9.7% last month, it’s still up 7.3% over the year.
Source: LSL/Acadata England & Wales House Price Index, June 2016