House prices edged up in July following three relatively flat months, with prices increasing by 0.8% in July and 2.3% annually, the highest annual growth rate seen since January this year.
The average UK property price stood at £291,268 in July, according to Halifax’s latest House Price Index, up over £2,200 compared to the previous month.
August’s base rate reduction, from 5.25% to 5% - the first cut for more than four years - may provide a further boost for the property market as mortgage rates are easing, although barriers to home homeownership remain. Amanda Bryden, Head of Mortgages, Halifax, said: “Last week’s Bank of England’s Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners."
“Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”
Northern Ireland again sees strongest growth
Property prices in Northern Ireland rose by 5.8% on an annual basis in July to an average of £195,681, with the region once again recording the strongest property price growth of any nation or region in the UK.
It is the highest increase in prices seen in Northern Ireland since February 2023, with prices up 4.1% compared to the previous month.
Other regions which recorded strong growth in July include the North West, where prices have risen 4.1% compared to the previous year, and Wales, where prices are up 3.4% on an annual basis. Average property prices in these two regions are currently £232,489 and £221,102 respectively.
Scotland saw a slightly lower increase in prices, with the price of an average property there rising by 2.1% more than the year before to £205,264.
Only one region saw property prices fall, with the average cost of a home in Eastern England down by 0.4% on an annual basis to £330,282.
The capital remains the most expensive area of the UK to buy a home, with prices there up 1.2% compared to last year to an average of £536,052.
