Business

House price inflation accelerates to 8.7% in June

House in Cotswolds Image copyright Thinkstock

The annual rate of UK house price inflation accelerated to 8.7% to June, according to official figures.

The rate was higher than the 8.5% rise measured in May, according to the new House Price Index, and brought the cost of an average home to £213,927.

The fastest growth was in the Western Isles, while the biggest fall was in Aberdeen, where prices dropped 6.8%.

Prices also fell significantly in Kensington and Chelsea (-6.2%) and other parts of West London.

The new "experimental" index comprises figures collated by the Office for National Statistics from data supplied by Land Registry, Registers of Scotland, Land and Property Services, Northern Ireland and the Valuation Office Agency.

It includes cash sales and new-build houses, which together make up more than a third of the market.

The figures do not fully reflect any impact of the result of the vote to leave the EU, which was declared on 24 June.

Where prices are rising fastest
Local authority % change (June 2016 v June 2015) Average price
Western Isles 28.1% £121,139
Slough 24.6% £297,034
Luton 21.8% £221,605
Newham (East London) 21.4% £355,950
Shetland Islands 20.3% £174,683
source: ONS

Last week, a survey of housing surveyors suggested that prices were now falling in London, East Anglia, the North of England and the West Midlands.

The survey from Royal Institution of Chartered Surveyors (Rics) said house price inflation had slowed in July.

However, Rics predicted that the rate of house price growth would recover over the next 12 months.

Where prices are falling fastest
Local authority % change (June 2016 v June 2015) Average price
Aberdeen -6.8% £178,069
Kensington and Chelsea -6.2% £1.212m
South Lakeland -3.2% £211,217
Hammersmith and Fulham -3.2% £746,570
County Durham -3% £96,883

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