House price growth picked up after a post-referendum blip, according to figures from the Office for National Statistics.
The ONS figures showed that in July – the first full month after the Brexit vote – the rate of growth in house prices slowed for the first time in a year but data released today showed that in August it started increasing again.
According to the data, house prices grew by 8.4 per cent in August, with the average house price now £219,000.
This is £17,000 higher than in August 2015 and £3,000 higher than July.
Ishaan Malhi, chief executive of online mortgage adviser Trussle, said the figures showed the Brexit vote has not “put the brakes on the market”.
He said: “A shortage of supply remains the core reason for the continued growth in prices, but the small upturn in August could also be down to a surge in demand following August’s interest rate cut.
“For those with a deposit saved, buying a home has become that little bit more affordable through cheaper mortgage rates, but it’s crucial that people do their due diligence and choose a lender that's passing on the full benefit of the rate cut to its borrowers.”
Figures released by the Land Registry today show the number of completed house sales in the run-up to the referendum slumped.
In June there were 47 per cent fewer completed house sales in London than the same month in 2015 while in England these fell by 32 per cent.
The ONS figures showed the east of England was the region which showed the highest annual growth, with prices increasing by 13.3 per cent in the year to August 2016. The lowest annual growth was in the north east, where prices increased by 3 per cent over the year.
In August the most expensive borough to live in was Kensington and Chelsea, where the average cost of an house was £1.3m.
Meanwhile the cheapest areas to purchase a property were Burnley and Blaenau Gwent, where an average house cost £77,000.