New data reveals London property values increased at a higher rate in May than the previous two months.
The latest house price index from the Office for National Statistics shows property values in the UK were up 1.1% in May when compared with April.
The upward trend was largely driven by London, where prices climbed 13.6% on the year to reach £472,163.
Data from the ONS – which launched its new index last month after merging its statistics with Land Registry figures – also shows the housing market saw far more sales than a year ago.
In May, sales were up 52% in England compared with the same month in 2015.
However, figures released last week by the Royal Institution of Chartered Surveyors points to sharp falls in both house sellers and buyers.
Using data collected after the result of the EU referendum was announced, a net balance of 45% more surveyors saw a fall rather than an increase in new homes coming on the market during June.
However, French investment bank Societe Generale says Brexit could increase the value of property in parts of prime central London, such as Belgravia and Knightsbridge. Analysts at Societe Generale recently write to clients saying that house prices in London could fall if companies based in the capital choose to relocate following Brexit.
However, it adds the recent falls in the value of the sterling means that London homes are effectively at a 10% discount for anyone buying in US dollars and are also considerably cheaper for those with euros.
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