The latest UK Cities House Price Index from Hometrack has shown that average house prices continue to grow despite Brexit.
The index, which analyses the property market trends across 20 UK cities, has revealed that demand for property in UK cities has remained strong, reporting that values increased by 10.2% in the year to June. The report shows that house prices continue to rise despite the uncertainty surrounding Brexit.
House prices continue to grow despite Brexit
The supply chain in London has somewhat slowed in recent months which could cause price increases to slow in the months ahead.
Overall, the 20 City Average in June was 10.2%, slightly higher than the average 8.6% recorded in the rest of the UK.
Private rents increase also increase
Property investors in the private rental sector will also be pleased with the news that rents have continued to rise in the UK.
Data from the June HomeLet Rental Index has found that average rents in the UK have continued to rise over the three months to June, albeit at a slower pace when compared to earlier in the year.
The average rent in the UK now stands up £773 per month (excluding Greater London). When compared to the previous year, this marks a 3.5% rise.
In London, the average cost of renting now sits at £1,575 per month – up 3.9% on last year.
Commenting on the report, Martin Totty, Barbon Insurance Group’s Chief Executive Officer, said:
“The June HomeLet Rental Index shows that the rental market remains resilient in the face of the various economic and political headwinds the sector has faced recently. Landlords are continuing to secure rental growth whilst there are some early signs of affordability criteria beginning to bear on the rates of rental price growth.
“The impact of the EU referendum vote will now play out over the months ahead: if, as expected, the result acts as a restraint on the supply of new housing, the gap between demand and supply in the private rental sector will remain marked; all the more so if more people decide to rent while waiting to see what happens to house prices.”
In-depth analysis of Brexit
There has been a lot of reports in the news about how the UK’s property market has reacted to the result of the EU Referendum. If you would like to read more, follow the link to read what the experts say about Brexit and house prices.