Between May and July the price of homes grew by 2.6% compared to 3.3% for the period February to April. Prices in the three months to July were 7.9% higher than the same three-month period a year earlier, which was lower than the 9.6% annual growth recorded in June.
House sales* increased by 5% between May and June to 104,590, the first time monthly sales exceeded 100,000 since September. Sales were 3% than in June 2014 which was the first annual rise this year.
Stephen Noakes, managing director retail customer products, said: “The underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand.
“Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near term.”
Connells reported a 6% upswing in house sales in quarter two compared to quarter one and an 8% increase compared to the same period last year. It said the current favourable economic climate had given buyers confidence to re-enter the market. This renewed interest has put pressure on buyers to make a quick decision over their property purchase. Connells’ statistics revealed that the number of viewings per offer fell by 6% on the previous quarter and offers per agreed sale fell for the third successive month taking it to its lowest level for more than two years.
*Source: HMRC seasonally adjusted.