According to the Office for National Statistics’ (ONS’) data, prices rose by 1.4% month-on-month.
In England, house prices averaged £290,956 in June, following a 3.3% yearly increase and 1.3% monthly rise.
The largest price increase was seen in the North East, with a 3.4% uplift to £163,679. The region also recorded the most significant yearly change, with 7.8% growth. Still, the North East was the region with the lowest averagely priced homes in England.
The only region to record a monthly decline in values was the South West, with a 0.5% fall to £301,660. House prices in the region were 1.5% higher than last year.
Muted monthly growth was seen in the East Midlands, London and Yorkshire and the Humber, recording marginal price rises of 0.6%, 0.6% and 0.7% respectively.
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Although the capital saw the lowest yearly growth rate at 0.8%, it was the highest priced region, with average values at £561,309.
In Wales, house prices rose 0.7% on a monthly basis and 2.6% annually to £209,728, while in Northern Ireland, a 0.3% monthly increase and 5.5% yearly rise took average house prices to £185,108.
Average house prices surged by the month in Scotland on a yearly basis, rising 5.9% to £191,927. Compared to the previous month, values were 2.2% higher.
Semi-detached house prices rise, flats and maisonettes stay static
The ONS recorded a 5% annual rise in the average price of a semi-detached house to £271,985.
This was followed by the average price of a detached home, which increased 4.4% to £437,904, and terraced homes, which were 4.1% higher than a year ago at £226,922.
The average price of a flat or maisonette stayed stable, with just a 0.3% change to £196,303.
New-build prices hike 14.2%
While the ONS said there was uncertainty around new-build prices, its data showed that the average price of a new-build home was 2% higher month-on-month and 14.2% up yearly at £368,354.
The average price of a resold property was £257,426, a 2.7% fall on the previous month and 1.6% up on the year before.
First-time buyers and former owner-occupiers both paid 1.4% more for their homes than the previous month, with a 1.4% change, averaging £227,495 and £331,139 respectively.
Annually, this represented respective increases of 3.4% and 3.8%.
Market activity will depend on mortgage offerings
Babek Ismayil, founder and CEO of OneDome, said higher house prices suggested that “while the market remains finely balanced, momentum is beginning to return”.
Ismayil said: “Elevated supply following the March stamp duty changes and increased landlord sales are still tempering demand, but easing affordability pressures are starting to provide a stabilising influence.
“Mortgage rates have started to fall, with dozens of products now available below 4%, and this has already boosted affordability and encouraged more buyers back into the market. The Bank of England’s recent interest rate cut has been fundamental in supporting confidence, and further reductions would provide much-needed stimulus.
“However, with inflation rising by more than expected to 3.8% in the 12 months to July, there is a real possibility that rate cuts may be paused for the rest of the year. If that happens, we could see buyer and seller confidence plateau, with the market relying more heavily on improved mortgage product availability and competitive pricing to maintain momentum.”
Steve Griffiths, commercial director for retail mortgages at Shawbrook, said while the price rises were “broadly in line with seasonal trends; interest rates falling to 4.25% in May have helped boost homebuyer confidence in the market and offset a sharp decline in activity post-stamp duty deadline coming into effect”.
Griffiths added: “Looking towards H2, there are positive signs that the market will continue to be resilient, especially in the face of wider economic concerns. The interest rate is now at the lowest point it’s been in two years, and mortgage lenders are cutting their rates to follow suit.
“Homebuyers looking to move forward with their property plans this year should continue to keep an eye on the news, but should ultimately feel encouraged by the stability we’re seeing in the market.”
