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Home worth inflation accelerated final month as progress in rental costs eased again, in keeping with official figures.
The common UK home worth elevated by 3.7% to £269,000 within the 12 months to June.
The Workplace for Nationwide Statistics (ONS) revealed an uptick in worth progress after a 2.7% rise was reported within the 12 months to Might.
It comes amid a backdrop of cooling rates of interest, which dropped once more to 4% earlier this month.
The acceleration comes after worth inflation was impacted by adjustments in stamp obligation, with the brink at which movers pay the tax reducing from £250,000 to £125,000 on the finish of March.
Elliott Jordan-Doak, senior UK economist at Pantheon Macroeconomics, mentioned: “Home costs are recovering rapidly from the disruption brought on by the hike to stamp obligation in April.
“Month-to-month home worth inflation will be risky at the most effective of occasions, so the sharp good points in home costs in Might and June might be partly undone by a fall in July’s knowledge.
“However slicing by means of the noise, we expect basic housing demand stays stable, indicating that home costs can proceed to rise steadily over the course of the second half of 2025.”
Common home costs elevated to £291,000 (3.3%) in England, £210,000 (2.6%) in Wales, and £192,000 (5.9%) in Scotland, within the 12 months to June.
In the meantime, common UK month-to-month non-public rents elevated by 5.9%, to £1,343, within the 12 months to July, the statistics physique mentioned.
Common rents elevated to £1,398 (6.0%) in England, £807 (7.9%) in Wales, and £999 (3.6%) in Scotland, within the 12 months to July.
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ONS head of housing market indices Aimee North mentioned: “Home worth annual inflation continues to choose up with the typical UK home worth now at round £269,000.
“Annual non-public rents inflation has slowed throughout the entire of the UK for the seventh consecutive month.”
Jean Jameson, chief gross sales officer at Foxtons, mentioned: “July introduced a gradual tempo of exercise, even because the summer time holidays took some patrons and sellers out of the market.
“That mentioned, well-priced properties, particularly one and two-bed flats the place provide is strongest, continued to draw curiosity.
“We’ve additionally seen an encouraging shift in sentiment following the current base fee minimize, which ought to assist a pick-up in exercise as we transfer in direction of the autumn.”
