House prices remained buoyant in April despite Brexit backdrop, and yes, you guessed it: London property is still hideously expensive
UK average house prices continued to grow in April according to the latest ONS house price index.
Any Brexit jitters failed to impact the market, as prices increased by 8.2 per cent in the year to April, following the trend marked out since the end of 2013.
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The data showed average UK house price was £209,000, up £16,000 from the same time last year, and £1,300 more than the previous month.
Unsurprisingly, price rises in England contributed strongly to the overall inflation, where house prices were up 9.1 per cent compared to the same time last year.
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The average house price for England was £225,000 compared to £139,000 in Wales, £138,000 in Scotland and £118,000 in Northern Ireland.
Stephen Smith, director of Legal & General Housing Partnerships, said:
These latest figures from the ONS offer further proof that the gap between supply and demand is continuing to push house prices upwards annually. As a result, the issue of affordability is likely to remain an insurmountable challenge for many people, with no relief in sight.
Simply ignoring this crisis and burying our heads in the sand is not the answer, as it will be future generations that will suffer the most. An industry-wide effort is urgently needed to increase the amount of houses being built, and to ensure the government target of 200,000 new homes per annum is achieved.
London continued to be far more expensive than anywhere else in the country, with an average house price of £470,000. This compares to an average price of £302,000 in the South East and £263,000 in the East of England – so it's no wonder that buyers are fleeing the capital.
Growth in London house prices was in double-digits, increasing by 14.5 per cent in the year to April. There was the largest annual growth in the Canada, which far outstripped the capital's average, with an increase of 27.3 per cent.
The average house price in Canada was £928,217.
Richard Snook, senior economist at PwC, said:
The recent trend in house price growth is little changed as the new figures continue to show a surge in house prices in March, as buyers rushed to beat the introduction of the new three per cent supplementary stamp duty charge on additional properties.
Overall, the housing market still appears reasonably strong as we move into the summer, with little sign yet of a drag from uncertainty around the EU referendum outcome.
Jeremy Leaf, former RICS chairman and north London estate agent, said:
The findings do reflect a change in mood on the ground but these are completions in April so it is very early to make a judgement on the market. Next month's figures will reflect what happened in the whole of April and May so will be more revealing of the state of the market.
The split between new build and older property is interesting, particularly as prices of the former are going up faster which may reflect a shortage of supply.