House prices across the South East rise by 10.9%

House prices in the South East have risen by nearly 11% in the last year.

Annual house price growth accelerated to 13.4% in June, marking the strongest growth since November 2004, according to an index.

Across the UK, the average house price in June was £245,432 according to Nationwide Building Society.

Prices were up by 0.7% month-on-month, following a 1.7% increase in May.

Parts of the South East that have seen an increase of 10.9%:

AshfordBedfordBraintreeBrighton and HoveCanterburyChichesterColchesterDoverEastbourneHastingsLewesRotherWealdenFarehamFolkestone and HytheGosportHavantIsle of WightMaldonNew ForestOxfordPortsmouthSouthamptonSwaleTendringTest ValleyThanetUttlesfordWinchesterWorthing

The average house price in the second quarter of this year in the South East is £313,815.

Robert Gardner, Nationwide's chief economist, said: "Prices in June were almost 5% higher than in March."

Mr Gardner said that while mortgage rates remain close to all-time lows: "House prices are close to a record high relative to average incomes.

"This is important because it makes it even harder for prospective first-time buyers to raise a deposit.

"For example, a 10% deposit is over 50% of a typical first-time buyer's income.

"A potential buyer earning the average wage and saving 15% of take-home pay would now take five years to raise a 10% deposit."

An estate agent's sold sign outside a property. Credit: Chris Ison/PA Wire

A stamp duty holiday will be tapered from July, before reverting to normal levels this autumn.

Mr Gardner said: "Activity will almost inevitably soften for a period after the stamp duty holiday expires at the end of September, given the strong incentive for people to bring forward their purchases to avoid the additional tax."

He added: "Underlying demand is likely to soften around the turn of the year if unemployment rises as most analysts expect, as Government support schemes wind down."