Have UK house prices hit a ceiling?
June’s house price statistics have been released and indicate a steadying of the market after the dramatic spike in figures at the beginning of the year, particularly in London. According to the Land Registry’s most recent report, prices have levelled out between May and June with no monthly change, although property prices are still 6.4% higher than one year ago.
London has dominated the housing market in the last couple of years with an annual increase of 16.4% on the previous year and the average house price £437,608 – the top average house price of £1.3m in the Royal Borough of Kensington and Chelsea. The latest reports however, show that there has been a levelling out in the capital as well, with a monthly increase of just 0.1%.
Some have attributed these changes to the new restrictions on mortgage spending cutting some buyers out of the market. One notable piece of data was the increase in first-time buyer transactions in the last 6 months: up 27% to £146,600 compared to the same period in the previous year. Experts have warned that the tighter restrictions on lending could impact this market in particular.
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