Jul 19

House prices rising by £16,000 a year, according to official figures

Official figures by the Office for National Statistics show the price of an average house or flat in the UK rose by £16,000 in the year to May.

While the house price inflation rate remained at 8.1%, the same as in April, the average price hit £211,000.

Last week, The Royal Institution of Chartered Surveyors (Rics) said that the supply of homes on the UK market fell at its sharpest rate to date and buyer demand hit an eight-year low after Britain voted for Brexit.

Simon Rubinsohn, Rics chief economist, said: “Big events such as elections typically do unsettle markets, so it is no surprise that the EU referendum has been associated with a downturn in activity.

“However, even without the build-up to the vote and subsequent decision in favour of Brexit, it is likely that the housing numbers would have slowed during the second quarter of the year.

“Rics data does suggest that the dip in activity will persist over the coming months, but the critical influence looking further ahead is how the economy performs in the wake of the uncertainty triggered by the vote to leave.”