UK House Price Index: June 2016

This is a high-level summary of the UK House Price Index (HPI), which replaces the previous house price indices separately published by the Land Registry and the Office for National Statistics. For full details, including commentary, historical data tables and analytical tools please see the main publication of the new HPI, published today on the GOV.UK website.

The UK HPI is a joint production by Land Registry, Land and Property Services Northern Ireland, Office for National Statistics and Registers of Scotland.

The reporting period for this release covers the calendar month of June 2016, therefore, the data predominantly refers to the period prior to the EU referendum.

UK average house prices have increased by 8.7% in the year to June 2016 (up from 8.5% in the year to May 2016), continuing the strong growth seen since the end of 2013.

The average UK house price was £214,000 in June 2016. This is £17,000 higher than in June 2015 and £2,100 higher than last month.

The main contribution to the increase in UK house prices came from England, where house prices increased by 9.3% over the year to June 2016, with the average price in England now £229,000. Wales saw house prices increase by 4.9% over the latest 12 months to stand at £145,000. In Scotland, the average price increased by 4.6% over the year to stand at £143,000. The average price in Northern Ireland is currently £123,000.

On a regional basis, London continues to be the region with the highest average house price at £472,000, followed by the South East and the East of England, which stand at £309,000 and £270,000 respectively. The lowest average price continues to be in the North East at £124,000.

The East of England replaces London as the region which showed the highest annual growth, with prices increasing by 14.3% in the year to June 2016. Growth in London remains high at 12.6%, followed by the South East with a 12.3% annual growth. The lowest annual growth was in the North East, where prices increased by 1.5% over the year.

The local authority showing the largest annual growth in the year to June 2016 was Na h-Eileanan Siar (Western Isles of Scotland), where prices increased by 28.1% to stand at £121,000. The lowest annual growth was recorded in the City of Aberdeen, where prices fell by 6.8% to stand at £178,000.

Movements at the local authority district level can be quite volatile due to the low number of transactions in some geographies.

In June 2016, the most expensive borough to live in was Kensington and Chelsea, where the cost of an average house was £1.2 million. In contrast, the cheapest area to purchase a property was Burnley, where an average house cost £75,000.