It takes the average property price to £183,462 but Stephen Noakes, mortgages director at the Halifax, pointed out that monthly data can be volatile and quarterly figures are more reliable.
The quarterly data shows that in the three months to the end of June prices were 2.3% higher than in the preceding three months. ‘House price change on this measure has now remained steady in a narrow range of 2% to 2.3% since June 2013,’ he said.
The data also shows that prices in the three months to June were 8.8% higher than in the same three months a year earlier and this was marginally higher than in May when it was 8.7%.
‘Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish,’ added Noakes.
There has been a lot of talk about house price growth slowing both this year and next. According to the Economic Research Council the decline will become more obvious from 2015 onwards, with property prices beginning to plateau from 2019.
According to Gráinne Gilmore of Knight Frank interest rate rises will start to impact on the rate of price growth as mortgages become more expensive. The Bank of England has already signalled that an interest rate rise is likely before the end of the year.
