28 July 2014 | By Devraj Ray
The housing market showed signs of cooling in June with as prices remaining almost unchanged from the month before.
According to Land Registry figures, the average UK house price reached £172,011 in June, virtually unmoved from £172,029 in May but 6.4 per cent higher than the £161,716 recorded in June 2013.
Prices in London rocketed from £375,942 in June last year to £437,608 last month. But despite the annual rise of 16.4 per cent, prices in the capital also saw no change from £437,072 May.
The North East saw the slowest annual growth in June, with an average price of £98,555 only 0.8 per cent higher than the £97,805 recorded a year earlier. Prices in the North East fell 1 per cent from May.
Yorkshire & Humber saw the steepest monthly fall, with prices dropping 1.3 per cent from £120,226 in May to £118,699 last month.
Capital Economics property economist Matthew Pointon says despite the slow in growth, he does not expect house prices to go through a sustained decline.
Pointon says: “House prices were flat in June, which led to the first drop in the annual rate in a year. That is consistent with other measures indicating a slowdown in the housing market.
“However, the strong economic backdrop rules out a sustained period of house price falls. A growing economy, combined with rising employment and pay growth, which will finally begin to rise in real terms, will all act to support housing demand.”
SPF Private Clients chief executive Mark Harris says: ”The latest Land Registry data points to the slowdown in the market which agents have been seeing over the past few months. Uncertainty surrounding a potential interest rate rise, and the outcome of the general election on the prime market which could result in the introduction of a mansion tax, are all having a cooling effect.
”London is still the leader of the pack, despite the pace of growth slowing.”