House prices in the UK rose by 1.6 per cent between May and June, taking the average price of property to £191,423, according to figures released by the Department of Communities and Local Government (DCLG).
It means there has been a decrease in the annual fall of house prices as, during the same period last year, prices fell by 0.7 per cent. The market has now contracted by 10.7 per cent over the last 12 months, marking a recent improvement.
In March this year, the annual rate of decline was measured at 13.6 per cent.
The rise in house prices can be attributed a 2.4 per cent increase in the price of bungalows, flats rising by 2.2 per cent, semi-detached houses by 1.9 per cent, detached properties by 1.7 per cent and terraced homes by 0.6 per cent.
Meanwhile, a report by the Royal Institution of Chartered Surveyors (RICS) has said that a lack of housing stock played an important role in market improvements in July.
"Although demand for property is continuing to rebound, it still remains low from a historical perspective. Crucially it is the lack of supply that is helping to underpin prices at the present time," said Jeremy Leaf, spokesperson Jeremy Leaf.
Surveyors reported increasing buyer enthusiasm, with 63 per cent reporting a rise in new enquires, compared to a fall. This development was borne out in completed sales, which rose to an average of 15 per surveyor over the quarter, an improvement on the previous quarter's reading of 13.
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