Largest increase in house prices since March 2005

UK house prices rose by 12.1% in June compared with a year ago, rising to 17.5% for London.

This is the largest rate of growth in UK house prices since March 2005, and is 1.3% greater than the figures for May, with the average house price increasing from £210,793 to £214,222. These figures further support the findings of a recent survey by The National Housing Federation (NHF) which forecasted that the average house price would reach £300,000 within the next 5 years.

However, many experts put this down to the market being particularly resilient to recent interest rate rises by the Bank of England, and therefore predict the rate of growth to slow down by the end of the year, as the higher interest rates begin to take effect.