House price growth at two-year low, but sales jump 15% in June
- Annual property price growth slows to 4.1% in June – smallest yearly rise since August 2013
- But standing at £278,849, the average house price in England and Wales hits new high
- Home sales soar 15% month-on-month, as buyers spring back into action after General Election lull
- London only ranks seventh in regional growth tally, with annual price rises falling to 1.8% in June
Adrian Gill, director of Reeds Rains estate agents, comments: “Whilst the vibrancy of house price growth across England and Wales has faded in the past year – with annual rises more than halving – the market still has colour in its cheeks.
“On a monthly basis typical property values have climbed 0.3%, or £966, since May and although growth has slowed, the property market recovery continues to paint an attractive picture for homeowners across the country – and average property values across England and Wales reached a bright new record of £278,849 in June. This is the fifth time already this year that house prices have hit a new high, and in cash terms it adds up to home values being £10,980 higher than a year ago.
“In addition, home sales across England and Wales soared 15% month-on-month in June, reaching a total of 73,000. This is above and beyond the seasonal uplift we’d typically expect at this time of year – and this new buoyancy in activity levels bodes well for the property market in the coming months. It’s clear the General Election distorted the usual tide of the market, with many buyers waiting until afterwards to complete on their purchases. In the first half of 2015, sales are 13% lower than the same period last year. But June’s sharp upward spike shows the start of this calibration back to firmer territory, as confidence in the political landscape solidifies with a majority government.