The latest ONS House Price Index has revealed that investment property prices have risen by 4.9 per cent in the year until June, reaching £223,000.
This figure is up £10,000 year on year, and is up £2,000 since May. The data shows that whilst house price inflation has stabilised since mid-2016, it has remained steady at 5 per cent during 2017.
The ONS data revealed that all regions have seen house price growth over the last year, led by the East of England, with prices rising in the region by 7.2 per cent. This was closely tailed by the East Midlands at 7.1 per cent.
In contrast, the North East saw the lowest annual growth, at just 2.5 per cent. Unsurprisingly, the capital also lagged behind other areas, with growth standing at a mere 2.9 per cent. Despite this, the London borough of Kensington and Chelsea saw values grow by 12.8 per cent, rendering it the location with the second largest growth figures. The Orkney Islands topped this list at 27.9 per cent. However it must be noted that the figures in the two areas are skewed by lack of sales.
Chairman at Jackson-Stops & Staff, Nick Leeming, commented on the figures: ‘A double crutch of record low mortgage rates and a lack of homes for sale continue to keep house price growth strong, with the East of England’s 14 month streak as top region for house price growth unbroken. Whilst this is good news for many homeowners seeing the equity in their home increase, it does place the goal of home ownership further out of reach for aspiring first-time buyers. Meanwhile other recent data shows transaction levels and new buyer enquiries performing sluggishly, which could have escalating consequences for people wanting to move relatively quickly, whether to cater for their growing family, a new job or a lifestyle change.’
Founder Director of independent estate agents James Pendleton, Lucy Pendleton, added: ‘There’s the slightest hint of a two-speed housing market here with the UK upping the pace of growth annually and monthly while London touched the brakes. Perhaps it’s not surprising to see the London market, after such strong gains, buck the national trend and slow down a little more in a general election month. However, the market is not lurching and there is still strong demand. The trailblazing East of England posting annual growth of more than 7 per cent is an obvious sign of confidence outside the capital.’