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UK house prices rising 2.1% faster than inflation

The average UK house price has risen to £199,534, up 2% on month and 5.4% annually, more than 2.1% faster than inflation, which stands at 3.3% (RPI) in data released by estate agent Barnard Marcus.

House prices in London grew by over £10,000 in June to £386,139, up 3% on month and 2% annually while the number of UK transactions has risen annually by 19% and 22% in London, as buyers continue to take advantage of attractive mortgage deals.

The number of UK mortgage applications is up 33% annually and first time buyer applications have soared by 37% compared to June last year.

David Plumtree, Chief Executive at Barnard Marcus said:

“Like the current temperatures, house prices just keep on rising with unprecedented gains in June. This is excellent news for home owners and those looking to sell over the summer.

“It’s also extremely encouraging to see applications for mortgages from first time buyers increasing by over a third annually (37%). Instead of being deterred from entering a market which is seeing increasing house prices, first time buyers are using this period of improved financial access to step onto the ladder, and they are certainly contributing to the healthy buyer registration figures we’re seeing, up 16% annually.

“The London market remains strong, with prices growing by over £10,000 in June alone. Increasing demand is still not being met, with new buyer registrations in London growing 47% annually but the supply of properties coming onto the market rising by just 22%. With finance readily available, people will continue to enter the market and prices will keep on rising.”

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