Search Acumen comments on the ONS/Land Registry UK House Price Index for June 2016.
“Today’s release by ONS and Land Registry has revealed a 1% growth in UK property prices in June and just a 0.2% increase in London.
“Although it appears the EU referendum may have had a negative impact on price growth in the short term, we should take stock after an 8.7% annual increase in prices as we’re already pushing the limits of affordability.
“After soaring UK house prices throughout 2015, June’s modest growth could be a breath of fresh air to first time buyers and ‘second steppers’, who will be further helped by more attractive mortgage deals since the Bank of England rate cut. As economic confidence begins to return, the real problem could be a lack of supply if there is a late summer surge in new buyers.”
“We must also remember that today’s data does not stem purely from the uncertain political landscape of the past few months, but instead represents longer term factors such as the buy-to-let and second home surcharges.
“Now could be the opportune moment for the government to think again on the stamp duty surcharge, or perhaps even introduce a stamp duty holiday for new build homes. It is essential that housebuilders have confidence in the market in order to boost investment in new sites and deliver more homes for the long term.”