UK property prices climbed in June, despite uncertainty

UK property prices climbed in June, despite uncertainty [Photo: Alija via iStock]

UK property was predicted to be heading for some tough times from June onwards, with the result in the European Union (EU) referendum being forecast as a bad one for the market and uncertainty set to make it difficult for the sector to gain a strong footing for many months. 

However, June's figures, although admittedly coming largely before the referendum itself, have shown that the market does still have the underlying health that could give it that glimmer of hope for the coming months. Uncertainty before the election was already prominent throughout the month, and yet property prices showed a surprising rise throughout June.

According to the latest report released on house prices by Halifax, the average price of a property in the UK now stands at some £216,823. This marked a rather surprising 1.3 per cent rise when compared to May, showing that even though uncertainty meant there were fewer buyers around, the overall health of the sector helped to keep it headed in the right direction. 

However, it's still important to note that even though there are positives to take from the market recording a rise at a time of uncertain political factors, June's data still shows that there was a slowing in the market caused by the upcoming referendum, indicating just how important political issues can be for property. 

Prices for June nationally were some 8.4 per cent higher than they were in the same month one year ago, but while this is positive, it represents a marked slowing when compared to the 9.2 per cent annual rise recorded in May. 

And it was a similar story on a quarterly basis. As of the end of June, property prices are as much as 1.2 per cent higher than they were at the end of March this year. However, on a quarter-by-quarter basis, this was slower than the 1.5 per cent rise in evidence in the quarter before. 

"House prices continue to increase, albeit at a slower rate, but this precedes the European Union referendum result, therefore it is far too early to determine any impact since," said Martin Ellis, Halifax housing economist.