House-Price Divide Between London and the Rest Continues in June

(Bloomberg) -- The beleaguered London housing market continued to diverge from the rest of the U.K. in June, according to a report from Acadata.

Home values grew 0.1% from a year earlier at the national level, bringing the average price to 300,039 pounds ($375,858), the report said. Excluding London and the southeast, prices rose 0.8%, with Wales and the northwest region of England posting the strongest gains.

Prices in London fell 1.4% as Brexit uncertainty and stamp-duty changes weighed on the market. The regional disparity was also reflected in a report from Deloitte, showing that consumer confidence is falling in the southeast and London but rising in the north of England.

Much of the outlook for the housing market will depend on who replaces Prime Minister Theresa May, and what form of Brexit they will pursue. The new deadline for the U.K. to leave the European Union is Oct. 31, and Boris Johnson, the front-runner to replace May, has pledged to take Britain out of the bloc with or without a deal.

A separate report by the Confederation of British Industry published Monday said that the next prime minister should make house-building a priority in order to make homes more affordable.

To contact the reporter on this story: Jill Ward in London at jward98@bloomberg.net

To contact the editors responsible for this story: Paul Gordon at pgordon6@bloomberg.net, Brian Swint, Andrew Atkinson

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