UK house price growth slows despite East and Northern Ireland surge

Annual house price inflation rose to 5.7% in June, according to the Office for National Statistics (ONS).

The ONS said prices increased in all areas of the UK except Scotland, where they fell 0.6%.

The East led the annual growth in house prices, rising 9.2%, while the South-East saw annual price growth of 7.7%.

House price inflation in England alone was 6.1 percent in June, up from 5.8 percent in the preceding month.

House prices have jumped more than £32 a day in the past year, figures have revealed.

That was particularly true in Northern Ireland, where prices are still well below the pre-downturn peak in 2007.

The average home in London now costs more than half a million pounds – £513,000.

Roger Harding, Shelter’s director of campaigns, said: “A further rise in house prices means that for an entire generation, a home of their own is nothing but a pipe dream”.

Despite the leap in prices in Northern Ireland, the average property price in the region is still 43% below its level seen before the financial crisis, at £154,000 in June.

Average house prices rose 5.7 percent year-over-year in June, following a 5.6 percent increase in May, revised down from the 5.7 percent hike estimated earlier.

“Today’s figures show that house prices are growing at more than twice the rate of average earnings, further squeezing affordability for buyers”.

“Piecemeal schemes may help a lucky few, but the only way for the government to turn this crisis around is to urgently invest in the genuinely affordable homes we need”.

He adds: “In the mainstream market, rising property prices are causing problems for those who aren’t wealthy, and many people are struggling to buy, despite cheap mortgage rates”.