According to the report from the Office for National Statistics (ONS), average house prices rose by 2.2% per annum in July after increasing by 2.7% per annum in June. This was the fifth price increase in a row. However, economists had expected prices to rise by 2.8% per annum. On a non-seasonally adjusted basis, average house prices increased by 0.6% between June and July, compared with an increase of 1.1% during the same period 12 months ago. On a seasonally adjusted basis, average house prices decreased by 0.4% m/m.
The ONS said that the average house price rose to 290,000 pounds in July from 284,000 pounds in July 2023. Average house prices increased in England (+1.6%, to 306,000 pounds), in Wales (+2.0%, to 218,000 pounds) and in Scotland (+6.0%, to 199,000 pounds).
Separate data showed that in August the average UK private rent rose by 8.4% per year after an increase of 8.6% per year in July. Average rents increased to 1,327 pounds (+8.5%) in England, 752 pounds (+8.5%) in Wales, and 969 pounds (+7.6%) in Scotland. In Northern Ireland, average rents increased by 9.9% in the 12 months to June. In England, rents inflation was highest in London (9.6%) and lowest in the South West (6.4%), in the 12 months to August.