The Office for National Statistics (ONS) figures showed that since May, average house prices in the UK had risen by 0.5%. 

The biggest yearly increase was recorded in Northern Ireland, where house prices rose by 6.4% to an average of £185,025. House prices in the country also had the largest monthly change, with a 3.6% surge. 

Growth was lower in Wales, where a 1.8% annual rise and 0.3% monthly increase put average house prices at £215,518 in June. 

Although Scotland has a 4.3% jump in average house prices to £192,488, values were flat on a monthly basis. 

In England, house prices increased by 2.4% compared to last year, coming to £305,370. This also represented a 0.6% rise since the preceding month. 

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Within England, Yorkshire and the Humber saw the most significant yearly uptick, recording a 4.7% rise to £215,347. On a month-on-month basis, this was 2.7% higher than average house prices in May. 

The region was followed by the North East, where house prices rose by 4.2% on the year before to average £164,886. This represented a 1.5% monthly increase. 

The lowest annual growth rate was seen in London, where there was a 0.6% rise to £523,134. 

Just two regions recorded a monthly drop in average house prices; the South West, where there was a 1% fall to an average of £317,259, and the East Midlands, where there was a 0.5% fall to £245,232. 

 

Rising values for semi-detached homes 

The average price of a semi-detached home rose by 4% annually to £280,895 in June, while terraced homes increased by 3.1% to £239,000. 

The average price of a detached home went up by 2.8% year-on-year to £439,974. 

Flats and maisonettes saw the most muted annual growth, at 0.5%, averaging £232,436 in June. 

Buyers paid £398,520 on average for new-build properties, 17.3% more than they would have paid a year ago. This was also a 4.4% jump since May. 

There was less of a change in the average price of existing resold properties, which rose by 0.4% both annually and monthly to £276,898. 

On average, cash buyers paid £271,910 for a home, 1.8% more than last year and 0.3% more than in May. Buyers using a mortgage saw a more significant annual difference and paid 3% more for a home than in 2023, at an average of £300,114. Since May, this was a 0.7% uplift. 

 

Greater hurdles for first-time buyers 

The average price paid by first-time buyers for their homes was £241,501, a 2.8% rise on the same month last year and a 0.9% increase on May. 

Former owner-occupiers paid an average of £333,346 for their homes. This was 2.5% more than a year ago and 0.1% higher than the previous month. 

Arjan Verbeek, CEO of Perenna, said the sixth consecutive month of house price increases meant the “goalposts for most first-time buyers have moved further away yet again”. 

He added: “Whilst mortgage rates are coming down, structural issues linger. Whether it’s the stressed mortgage rate that traditional mortgage products assess borrowers with or the loan-to-income [LTI] flow limit restriction, mortgage borrowers across the demographics are hamstrung. 

“To help more people onto the ladder and keep them there, the mortgage market needs to innovate and expand its offering.” 

Holly Tomlinson, financial planner at Quilter, said the recent base rate reduction would further stimulate the market, boosting confidence among buyers and sellers. 

However, Tomlinson this optimism would be “tempered by the ongoing challenges faced by prospective buyers, particularly first-time buyers”.

She added: “While existing homeowners may welcome the rise in house prices, it continues to make homeownership increasingly difficult for those trying to get onto the property ladder. The disconnect between wage growth and house price inflation remains a significant barrier, with many relying on family support or delaying their purchase until much later in life.

“This issue highlights a broader challenge for the government, as addressing the supply and demand dynamics in the housing market is only part of the solution; the deeper issue lies in ensuring that wage growth keeps pace with rising property values, which is no mean feat.” 

Mobeen Akram, new homes director at Mortgage Advice Bureau (MAB), predicted that house prices would start to fall over the long term and hoped to see wage growth outpace inflation. 

She said this would mean improved affordability for first-time buyers. 

“Nevertheless, we’re unlikely to witness a drop in the number of first-time buyer numbers during 2024, which is positive for the market,” Akram added.