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UK house prices edge up in June but London prices drop again
UK house prices edged higher in June, but prices in the capital fell as the busier spring selling season came to an end, according to a survey by Rightmove.
House prices were up 0.4% on the month in June to an average £309,439, down from a 0.8% jump in May, but still setting a new record for the third consecutive month.
On the year, prices were up 1.7% compared to a 1.1% increase in May.
Miles Shipside, Rightmove director and housing market analyst, said: "This is a pleasingly strong flourish at the end the spring selling season given the political uncertainty and stretched buyer affordability. At an initial glance all of this fits with a theme of 'steady as she goes' as the spring market concludes.
"However, if you dig a bit deeper, you'll find that the main driver is good buyer demand in the comparatively stock-starved northern half of Britain's housing market. This demand, fuelled by prices that in comparison to the south are still relatively affordable, have meant the number of properties left available to buy has dwindled in the north and increased in the south."
In London, however, prices were down 0.9% on the month to £631,737, and 1% lower on the year - marking the tenth consecutive month that the annual rate was in negative territory. Rightmove said London had 16.4% more available inventory than this time last year, fuelling a buyers' market in some areas.
Shipside said: "With the normally more active spring buyer market over and with some potential buyers likely to be distracted by summer holidays and World Cup-itis, the goal posts have just moved. Sellers in locations that have seen larger percentage increases in the number of available properties will have to price lower than properties they are competing against, as there are few better tactics than a bargain price to tempt buyers."