The study also showed house price inflation in London reached 17.5 per cent – up from 14.3 per cent in May. The UK annual house price inflation rate for the three months to June was 11.3 per cent and 15.1 per cent in London.
The increase in inflation took the mix-adjusted average house price in the UK to £214,222, up from £210,793 in May, not seasonally adjusted.
Between May and June there was a rise of 1.6 per cent in the prices index of properties bought, compared with a smaller rise of 0.4 per cent over the same period last year, which resulted in an increase in the inflation rate.
The rise in prices between May and June was attributed to increases in average prices for flats, detached properties and bungalows, semi-detached dwellings and terraced houses.
However, Wales bucked the trend and showed a decrease in inflation in June, falling from 8.5 per cent in May to 7.6 per cent in June. Scotland’s inflation remained static at 15.6 per cent, while England rose to 11 per cent from 9.6 per cent and Northern Ireland recorded 55.9 per cent annual inflation compared to 53 per cent in May.
Steve Brockman, director at A2B Mtg Co Ltd, said: “Obviously, house prices will continue to rise until such a time that more affordable houses come on the market. It is the lack of this that is the problem. I think it will take another six months for inflation to drop back and in the long-term it will rise at a much lower level.”
