UK house prices increased by 5.7% in the year to June 2015, up from 5.6% in the year to May, taking the national average to £277,000.
The Office for National Statistics data reveals prices grew 6.1% in England to £290,000, 0.8% in Wales to £169,000, 9% in Northern Ireland to £154,000, but they dipped 0.6% in Scotland to £192,000.
London had the highest average house price at £513,000 and the North East had the lowest average house price at £156,000.
Prices paid by first-time buyers were 5.1% higher on average than in June 2014.
Roger Harding, Shelter’s director of campaigns, says: “A further rise in house prices means that for an entire generation, a home of their own is nothing but a pipe dream.
“From families trapped in expensive and insecure private renting, to young people stuck in their childhood bedrooms, a stable future is spiralling further and further out of reach for millions.
“Piecemeal schemes may help a lucky few, but the only way for the government to turn this crisis around is to urgently invest in the genuinely affordable homes we need. The autumn spending review is their last chance to put real money towards this, and show they’re serious.”
Paul Smith, chief executive of Haart estate agents, adds: “The continued growth in house prices reported by the ONS comes as a result of a shortage of property supply in tandem with a rising level of demand.
“Our data shows that there are currently 12 prospective buyers chasing each property for sale. One reason for this is there are not enough suitable properties being built. For example developers are favouring apartments, which are great investment opportunities, but fail to satisfy the needs of growing families.
“In a drastic reversal of regional trends, it is not London driving national house price growth, but other areas such as the East of England and Northern Ireland which have seen price increases of 9.2% and 9% respectively.”
Smith says this is evidence that the supply shortage is now a far-reaching problem that needs to be tackled imminently.
“The new All-Party Parliamentary Group for Housing and Planning needs to drive national action from the centre and it needs to think innovatively to effect real change in the UK’s housing market, which may include decisions that aren’t universally popular,” he says.
Source: Mindful Money