HOUSE prices increased by 1.5 per cent in Bournemouth, Christchurch and Poole in June, new figures show.

The boost contributes to the longer-term trend, which has seen property prices in the area achieve 10.2 per cent annual growth.

The average house price in the conurbation in June was £308,071, Land Registry figures show – a 1.5 per cent increase on May.

Over the month, the picture was less good than that across the south west, where prices increased 5.5 per cent, and Bournemouth, Christchurch and Poole underperformed compared to the 4.5 per cent rise for the UK as a whole.

Over the last year, the average sale price of property in Bournemouth, Christchurch and Poole rose by £29,000 – putting the area 17th among the South West’s 32 local authorities for annual growth.

The best annual growth in the region was in the Cotswolds, where property prices increased on average by 22.6 per cent, to £463,000. At the other end of the scale, properties in Stroud gained 0.2 per cent in value, giving an average price of £285,000.

Owners of terraced houses saw the biggest improvement in property prices in Bournemouth, Christchurch and Poole in June – they increased 1.7%, to £268,415 on average. Over the last year, prices rose by 11.4 per cent.

Detached: up 1.5 per cent monthly; up 11.2 per cent annually; £509,340 average. Semi-detached: up 1.5% monthly; up 10.5% annually; £324,831 average. Flats: up 1.6 per cent monthly; up 8.9 per cent annually; £201,417 average

First-time buyers in the conurbation spent an average of £239,000 on their property – £21,000 more than a year ago, and £33,000 more than in June 2016.

Gráinne Gilmore, head of research for Zoopla said: "Demand among home buyers has run at peak levels for over a year now. The pandemic and its lockdowns forced a ‘reassessment of home’ for many and, with the bonus of the stamp duty holiday, boosted sales volumes accordingly.

"However, stock levels are failing to keep pace, and the imbalance of supply and demand is underpinning house price growth across the UK. Annual house price growth is expected to remain above 4-5 per cent right through to the end of the year."

Buyers paid 4.5 per cent more than the average price in the South West (£295,000) in June for a property in the conurbation. Across the South West, property prices are higher than those across the UK, where the average cost £266,000.