"The lowest rate of annual house price growth since the Brexit vote demonstrates the detrimental impact that our current political position continues to have"
On a non-seasonally adjusted basis, average house prices increased by 0.7% between May and June, the same as in May and June 2018. However on a seasonally adjusted basis, prices increased by just 0.1%.
The East Midlands was the English region with the highest annual house price growth, with prices increasing by 3.2% in the year to June. This was followed by the West Midlands, with prices increasing by 2.6%.
The lowest annual growth was in London, where prices fell by 2.7% over the year. Average house prices in London have now been falling over the year each month since March 2018, a period of 16 months. This compares to 15 months of prices falling over the year in London during 2008 and 2009, the period of the economic downturn.
Marc von Grundherr, director of Benham and Reeves, commented: “The lowest rate of annual house price growth since the Brexit vote demonstrates the detrimental impact that our current political position continues to have over the sentiment of UK buyers and sellers, particularly those in London.
"However, while other reports based on asking prices and mortgage approvals may provide a more sensationalist view, figures on sales completions suggest a market that is ticking over in neutral rather than careering off a cliff.
"Transaction levels remain muted but steady and while prices aren’t accelerating, they are stable, and we are world’s away from seeing a market crash. A seasonal uplift in buyer activity over the coming months should see property price growth climb through the gears and depending on which EU exit we take; the market should return to full speed with ease before the year is out.”
Tomer Aboody, director of MT Finance, added: "Would-be buyers and sellers are still waiting for Brexit to be resolved. Whether it is hard, soft, or no Brexit, the important thing is that a decision is made so people can get on with things. Sales volumes are relatively similar to last year and the couple of years before that because Brexit indecision has been going on for so long. This will improve once a decision is made, and pent-up demand will be released."
