UK house prices heating up, rising 2.1% faster than inflation

KEY POINTS:
* The average UK house price rises to £199,534, up 2% on month and 5.4% annually, more than 2.1% faster than inflation, which stands at 3.3% (RPI) 
* House prices in London grow by over £10,000 in June to £386,139, up 3% on month and 2% annually 
* UK transactions rise annually by 19% and 22% in London, as buyers continue to take advantage of attractive mortgage deals 
* The number of UK mortgage applications is up 33% annually and first time buyer applications soar by 37% compared to June last year 

The UK’s average house price has risen by 2% on month and 5.4% annually, to £199,534 according to the Sequence group. 
This is the highest price point for over two years and the growth is 2.1% higher than inflation. 
London has also seen strong price rises, with the average property price standing at £386,139, which is 3% higher than May (up £10,157) and 2% higher than last June. Graph 1 shows the growth over two years with a steep rise since April, averaging at a 3% rise per month over the last quarter. 
Property transactions across the UK are at a two year high, rising by 2% in June and 19% annually, showing that buyers are undeterred by the increasing prices.(Graph 2*) Transactions in London are mirroring the national picture, rising by 22% annually, and an average of 8% per month since the start of the year. 
These high levels of transactions and increasing property prices are attributed to improving access to mortgage finance, through initiatives, such as the Funding for Lending scheme, and some relaxation in lending criteria.  
 David Plumtree, Chief Executive at Barnard Marcus, part of the 300 branch Sequence group, including William H Brown and Fox & Sons, comments: "Like the current temperatures, house prices just keep on rising with unprecedented gains in June. This is excellent news for home owners and those looking to sell over the summer. 
"It’s also extremely encouraging to see applications for mortgages from first time buyers increasing by over a third annually (37%). Instead of being deterred from entering a market which is seeing increasing house prices, first time buyers are using this period of improved financial access to step onto the ladder, and they are certainly contributing to the healthy buyer registration figures we’re seeing, up 16% annually. 
"The London market remains strong, with prices growing by over £10,000 in June alone. Increasing demand is still not being met, with new buyer registrations in London growing 47% annually but the supply of properties coming onto the market rising by just 22%. With finance readily available, people will continue to enter the market and prices will keep on rising." 

Key figures figures from the region's:

Wales: Average House Price £170,179 % Change Monthly 1.18%% Change Annually 8.18%
South West: Average House Price £180,240 % Change Monthly 2.14% Change Annually 7.37%
North West: Average House Price £145,343 % Change Monthly 0.62% Change Annually -0.79%
South East: Average House Price £242,902 % Change Monthly 1.69% Change Annually 0.95%
London: Average House Price £386,139 % Change Monthly 2.70% Change Annually 1.78%
East Anglia: Average House Price £162,663 % Change Monthly 1.64% Change Annually -0.05%
Midlands: Average House Price £132,528 % Change Monthly-0.87%  Change Annually 3.44%
North East: Average House Price £125,293 % Change Monthly 2.44% Change Annually 3.90%
Scotland: Average House Price £117,332% Change Monthly -0.01% Change Annually 3.54%

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