House prices pick up in June

House price growth was strong in June, at an annual level of 12.1 per cent, up from 10.8 per cent in May, Communities and Local Government (CLG) has announced.

In London alone, annual house price inflation stood at 17.5 per cent in June, compared to 14.3 per cent in May.

In the three months to June, house prices were at an annual growth rate of 11.3 per cent across the UK and 15.1 per cent in London, bringing the average cost of a home to £214,222.

Between May and June this year, prices rose by 1.6 per cent, which CLG attributed to increases in the prices of flats (2.4 per cent), detached properties and bungalows (2.3 per cent each), semi-detached homes (1.1 per cent) and terraced houses (one per cent).

Commenting on the figures, research group Capital Economics said: "Today's CLG data showed that national average house price growth in June hit its highest level since March 2005. Growth picked up in the vast majority of regions.

"Even so, with other indicators pointing to a softening in house price momentum in July and with interest rates set to increase again, the CLG data should soon moderate."

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