Latest data released by LSL reveals that the average price of a property in England and Wales rose by 0.6% during June. This comes as a welcome break following three consecutive months of falling house price values, including a 0.9% drop in May.
Rise and falls
This said, property prices in the capital fell by 1.4% month-on-month, the largest drop seen since May 2011.
Across England, year-on-year prices have risen by 6%, with the typical house sale amounting to £293,444. The East of England saw the largest increase of 9.4%.
What’s more, sales in the three months to June increased by 8% in comparison to the same period in 2015. Of course, these figures were driven up by investors surging to beat the additional Stamp Duty deadline on April 1st.
During June 2016, roughly 72,000 sales were completed, 13% lower than in 2015, but up on the 55,250 figure seen in May 2016.
Property prices up by 0.6% in June
Brexit consequences
Adrian Gill, director of Your Move and Reeds Rains, has suggested that the Brexit result will bring with it wide ranging consequences for the housing market.
Gill observed, ‘exactly how the implications will play out in the sector over the coming months is yet to be seen and whilst 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.’[1]
‘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,’ Gill added.[1]
[1] http://www.propertyreporter.co.uk/property/june-house-prices-see-a-06-rise.html