The price watch is an inclusive summary of all the six major UK house price indices. The figure is a 0.22 per cent increase on the annual growth up to May (6.52 per cent) and a 2.51 per cent increase since the beginning of the year (4.23 per cent).
The market is continuing to show positive growth, but this is now starting to slow as we head into the latter end of the summer. London has been leading this upward movement in the market, but the industry can expect strong price rises to taper off as affordability in the city reaches a ceiling as a result of rising household bills and static wage inflation, combined with the effect of the traditionally quiet summer months.
At the latter end of the summer, Assetz anticipates that annual growth will level off at around the 5 per cent mark, in line with its original predictions of 5 – 7 per cent growth by the end of 2006.
The average house price, taken from the average price provided by all the six indices is £189,408, up from £189,317 in May. This shows an increase of over £10,000 on the price of a home in the 12 months since June last year, when the average property price was £179,341.
Stuart Law, managing director of Assetz, said: “I am seeing no big surprises from the housing market this summer. A strong performance in the first six months is now beginning to slow, resulting in a confident 5 – 7 per cent growth by the end of the year in line with our original predictions. The maintenance of interest rates at present levels is providing a platform for steady overall growth, and a slowdown in August and September is to be expected and should have no long term implications for the stability of the market.”
