By Jonathan Davies
Annual house price inflation rose to 5.7% in June, according to the Office for National Statistics (ONS).
It was a small rise on May’s house prices increase, which was at 5.6%.
July’s increase in the rate of growth marked the first in a trend of falling inflation that has been in place since September 2014 when it peaked at 12%.
Based on ONS figures, the average house prices is now £277,000.
The ONS said prices increased in all areas of the UK except Scotland, where they fell 0.6%. Northern Ireland saw prices rise by 9%. Across England, house prices were up 6.1%, and Wales reported a 0.8% increase.
The continued lack of supply to meet growing demand was again the reason for house prices rising, the ONS said.
Accountancy firm PwC said rising house prices would influence people to rent, rather than buy, in years to come.
“By 2025 there will be more private renters than people owning a home with a mortgage, ” said Richard Snook, senior economist at PwC.
“Today’s figures show that house prices are growing at more than twice the rate of average earnings, further squeezing affordability for buyers.”