British house prices rise 8.7% despite fears of Brexit crash

House prices increased by £17,000 in the year to June, continuing the upward trend in property values across the UK despite fears of a Brexit downturn.

A typical property in the UK cost £214,000 in June, marking an 8.7 per cent increase from the same month last year, figures from the Office for National Statistics (ONS) showed. That compares with an 8.5 per cent rise in the year to May.

On a month-to-month basis, June prices increased £2,100.

The figures are in the ONS’s first housing report that takes into account the initial seven-day period following the EU referendum.

It follows a report by property website Rightmove earlier this week which showed that home prices in England and Wales in August saw their biggest fall since November last year.

England saw the biggest increase in prices, up 9.3 per cent to average £229,000, with a 4.9 per cent jump to £145,000 in Wales, and a 4.6 per cent rise to £143,000 in Scotland. The lowest average price was found in Northern Ireland at £123,000.

London’s prices trumped the regions, with the average home costing £472,000.

John Goodall, chief executive and co-founder of peer-to-peer platform Landbay, said: “Brexit uncertainty alone was not enough to derail the UK housing market in June, as prices continued to rise steadily. High demand drove the uplift in prices, with mortgage lending volumes jumping 16 per cent in June alone.”

Mr Goodall added that all eyes will be on next month's ONS figures, which are expected to show a slight slowdown for July. – (PA)