The Hometrack June House Price Survey revealed average house prices increased by 2.4 per cent from June 2005, with average house prices standing at £165,500.
The monthly research indicated a rise in London house prices by 1.1 per cent over June, with London prices rising 5.8 per cent during the first half of 2006. Regionally, Hometrack revealed prices increased by 2.7 per cent in East Anglia, and 2.6 per cent in the South East, while the North registered a rise of 0.1 per cent from January.
The findings also revealed a rise to over 8 per cent in the number of sales agreed during June, up from the May findings of 3.3 per cent.
Commenting on the survey’s findings, Richard Donnell, director of research at Hometrack, said:
“Looking back over the first six months of the year there is a stark difference in performance between London and the rest of the country.
“The continued growth in prices and rising sales levels suggest continued buyer confidence over the prospects for the market. However, with high house prices and stretched affordability levels, buyer confidence is fragile.”
Similar research by propertyfinder.com has revealed a slowing of the market, with a sharp fall in house price expectations, from 7.7 per cent in May, to the June findings of 4.3 per cent. The monthly housing review revealed 78 per cent of respondents expected the market to rise over the next 12 months, a decrease of 6 per cent from May’s findings of 84 per cent.
Warren Bright, chief executive officer of propertyfinder.com, said: “Fears over interest rates and stock market volatility may explain much of the cooling, but the World Cup effect should not be underestimated. The number of people looking for property on propertyfinder.com fell 35 per cent during the latest England game.”
