The price of property is starting to accelerate again, according to the latest UK house price index from the Office for National Statistics.
Average house prices in the UK have increased by 5.1 per cent in the year to July 2017 (unchanged from June 2017), the ONS said.
The annual growth rate has slowed since mid-2016 but has remained broadly around 5 per cent during 2017.
The average UK house price was £226,000 in July 2017, according to the ONS.
This is £11,000 more than in July 2016 and £2,000 higher than last month.
Russell Quirk, founder and chief executive of eMoov.co.uk, said this latest index provides the most compelling evidence yet that the UK property market has been able to shake off the woes of the previous year and snap election, to see positive growth during the summer months.
He said: “The rate of growth during this period is higher than previously reported by Halifax and Nationwide, which is impressive given that this price data usually lags slightly behind other industry sources that base their figures on mortgage approvals rather than sales completions.
“A sustained level of growth can now be expected and it is unlikely that any further developments in the Brexit process should dampen this.
“Although the market has taken a wobble, UK homeowners should rest assured that the worst is now behind them and we won’t be seeing a repeat of the 2007 crash.”
Mark Harris, chief executive of mortgage broker SPF Private Clients, said lenders are still keen to lend but with the purchase market still relatively quiet, they are turning their attention to remortgaging with some excellent rates.
He said: “Santander is the latest lender to cut pricing on its two- and five-year fixed-rate remortgage deals, while other lenders have also been tweaking pricing - HSBC scrapping standard valuation fees and First Direct halving fees and increasing rates - as they jockey for position in the market.
“This is encouraging as it means other lenders must be forced to offer borrowers incentives so as not to be at a competitive disadvantage.”