The UK’s house prices are continuing to rise and witnessed solid growth in July despite the Brexit vote, according to the latest data from the Office for National Statistics (ONS).
The strong growth that has been witnessed for the past three years has been maintained, with the ONS reporting an 8.3 per cent yearly rise in home values between July 2015 and the same month this year.
The average UK house price now stands at £217,000, compared to the £200,000 recorded 12 months ago. The latest data also covers the first calendar month since the result of the EU referendum was announced on June 23.
On a monthly basis, there was a 0.4 per cent rise in prices, representing a £1,000 increase in average selling prices across the country.
Defying pre-Brexit predictions
Many had predicted that the Brexit vote would have a negative impact on many sectors, but any fears of the housing market being impacted appear to have been misplaced, with continued growth witnessed throughout the month.
Although the yearly growth to July represents a slight fall from the 9.7 per cent rise seen between June 2015 and June 2016, it is a stark contrast from the dip that some analysts had anticipated and illustrates that the market is weathering the storm.
It also follows data published by the Royal Institution of Chartered Surveyors (Rics), which revealed that August witnessed a significant rebound in both confidence and activity across the industry, following a slight lull in July.
The official figures published by the ONS are traditionally a month behind similar reports from Rics, but offer a more accurate representation of the market as they incorporate Land Registry data that tracks every house completion in the country dating back to 1995.
Although it is important not to look too closely into the figures until we see August’s data, analysts have reacted positively to the data, with Samuel Tombs, chief economist at Pantheon Macroeconomics, saying it highlights that homebuyers committed to property purchases did not try to negotiate prices down in response to the referendum result.
The general consensus in the industry is that the post-Brexit bounce is likely to be business as usual for the sector, rather than an anomaly.
The data has been further supported by the monthly Halifax House Price Index, which revealed that house prices were 6.9 per cent higher in August than at the same time last year, while quarterly basis prices increased by 0.7 per cent.
Plenty of opportunities
The Mortgage Advice Bureau said the reports together provide “a good temperature check” for the country’s property market, along with the activity of the Bank of England, which moved to lower its base rate to a historic low of 0.25 per cent in August.
Those looking to buy a property are therefore currently in a strong position, with record-breaking mortgage deals being offered on two-, five- and ten-year fixed rate terms and lenders vying to offer market-leading prices.
Use our mortgage calculator, created with the Mortgage Advice Bureau, to work out the best deal for you.