House prices rise by 5.2% in year, says ONS

House prices increased by 1.8% in the month of July, according to figures released yesterday by the Office for National Statistics.

Prices rose by 5.2% in the year to July, but they were down on the 5.7% figure of the year to June.

Broken down, prices had increased by 5.6% year-on-year in England, by 0.3% in Wales, and by 7.4% in Northern Ireland. However, Scotland has seen a year-on-year decline of 1.3%.

London prices increased by 5.5% in the year to July, up from 5.3% in the year to June but down on the national average.

Excluding London and the South-East, prices increased by 4.4%

The ONS said the increases in England were driven by an annual increase in the East of 8.3% and in the South-East of 6.7%.

In London the average house price stood at £525,000 in July, while at the other end of the scale, in the North-East, the average price was £156,000.

Average mix-adjusted house prices stood at £295,000 in England, £173,000 in Wales, £154,000 in Northern Ireland and £196,000 in Scotland.

Excluding London and the South-East, the average UK mix-adjusted house price was £215,000.

Campbell Robb, Shelter’s chief executive, said: “Not addressing our dramatic shortage of homes is pushing house prices higher and higher, and a stable home further out of reach for millions of young people and families. Instead they’re trapped in expensive and insecure private renting, or stuck in childhood bedrooms.

“Current government schemes like Help to Buy or Starter Homes don’t help the ordinary families on average wages who are struggling to keep up with sky-high housing costs.

“The autumn spending review is the government’s last chance to show they’re serious about turning around the housing crisis, by investing in the genuinely affordable homes we desperately need.”

However, the ONS statistics – drawn from mortgage data – continue to be at odds with Land Registry figures which put the average house price at just £183,861 – more than £100,000 less than the ONS mix-adjusted figure.

According to the ONS the difference is due to the fact that the Land Registry uses a repeat sales methodology and includes cash sales.

A spokesman did say, however, that the ONS and Land Registry are working to develop a joint house price index that will replace the current two in mid-2016.

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