House prices rose again last month to record levels but considerable regional variations remain, new figures have revealed.
According to the Halifax house price index, house prices in the UK have risen 8.5% to a record of £215,582, up from £211,868 in the previous quarter.
It is the lowest annual increase recorded since the third quarter of 2015.
However, there were considerable regional variations in terms of house price inflation and standard house price levels with the gap between the most expensive and cheapest regions at a new record of £330,000.
The average price of a property in London is now pushing £450,000. This is close to four times the average price paid in the area of the UK with the lowest house value – currently Northern Ireland at £119,000.
Along with the South East (13.9%), house price inflation in London was the strongest seen in the UK. Outside of these two regions, no others recorded double-digit house price rises with most registering considerable slowdowns compared to the previous quarter.
Scotland (-1.6%) and Wales (-0.6%) both saw modest year-on-year falls in house prices, while the rate of inflation in Northern Ireland fell sharply to just 3.5%.
House prices in Northern Ireland are still some 48% down on their peak seen in 2007, while in Wales they remain close to 10% down on pre-financial crisis levels and Scotland some 6.4% down.
Other regions currently recording house price levels below pre-financial crisis highs include the North (- 6.9%) and the North West (-2.5%).
Chris Williamson, chief economist at Markit, said: “Although average prices moved 1.8% higher than the first quarter, only six of the 12 UK regions saw house prices rise in the three months to June, with prices falling in five regions and stagnating in London.
“This is the first time that prices have failed to rise in London since late 2012. The second quarter stagnation still left house prices in the capital some 14.6% higher than a year ago, the highest annual rate of increase of all UK regions, but that’s down from 21.2% in the first three months of the year.
“Some of the heat therefore seems to have come off the housing market. However, the extent to which this is a reflection of Brexit worries or the increase in stamp duty in the Budget remains uncertain.”
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