Annual house price growth weakens in June amidst rising interest rates

According to the latest UK house price index for June 2023, average UK house prices increased by 1.7% in the 12 months to June 2023, down from 1.8% in May 2023. 

The average UK house price was £288,000 in June 2023 which is £5,000 higher than 12 months ago, but £5,000 below the recent peak in November 2022.

Commenting on the latest figures Peter Graham, partner and head of RSM UK’s Real Estate and Construction team in the North West, said: ‘The statistics show that UK house prices are still growing but that growth has slowed from prior months. This is not a surprise given the impact that rising interest rates are having on affordability. Significantly higher borrowing costs alongside high inflation will continue to have an adverse impact on buying power which will is likely to lead to even slower growth in UK house prices in future months.’