UK House Price Growth Slows to 2% in June

Annual house price growth in the United Kingdom slowed to 2% in June, down from 3% in May, according to the Office for National Statistics. The average house price reached £272,000, though growth varied sharply by region. Northern Ireland saw a significant annual jump of 9.2% to £202,000, and the North West recorded the highest growth in England at 4.7%.

London experienced its tenth consecutive month of annual declines, with average prices falling 2.5% to £554,000. The most severe losses occurred in wealthy central boroughs; Westminster prices plummeted 25.4% to £854,000, while Kensington and Chelsea fell 14.7%. Analysts attribute the capital's slump to high stamp duty, the end of non-dom status, and higher mortgage rates linked to the Iran war. Market hesitancy has been further fueled by Prime Minister Andy Burnham's plans to move Whitehall jobs to Manchester and a proposed mansion tax on homes worth over £2 million.

The Office for National Statistics attributed the broader national slowdown to weaker summer growth compared to the previous year. Simultaneously, Consumer Prices Index inflation rose to 2.9% in July and average monthly private rents increased 3.7% to £1,393. Experts suggest that rising inflation may prompt the Bank of England to maintain cautious interest rates, which could continue to hinder affordability for homebuyers through the autumn.