House prices in the UK went up by just 0.8% on a monthly basis, the latest Halifax House Price Index reveals.
On an annual basis, house prices were up by 2.3%, compared to the 1.6% the month prior.
The average house price now stands at £291,268, up slightly from the £288,455 in June.
Northern Ireland continued to record the strongest property price growth rising by 5.8% on an annual basis in July, up from 4.1% the month prior.
The average property price in Northern Ireland is now £195,681.
House prices in the North West also recorded strong growth, up 4.1%, compared to the previous month, with property prices standing at £232,489 on average.
House prices in Wales grew by 3.4% to £221,102, which represents the highest price seen since October 2022.
Scotland saw a rise in house prices, a typical property now costs £205,264, an increase of 2.1% more than the year before.
The only region or nation to record a fall across the UK was Eastern England. Properties here now average £330,282, down 0.4% on an annual basis.
London continues to have the most expensive property prices in the UK, now averaging £536,052, up 1.2% compared to last year.
Halifax head of mortgages Amanda Bryden says: “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.”
Fine & Country managing director Nicky Stevenson comments: “This year’s housing market has been a rollercoaster, but July saw house prices gain momentum.”
“Affordability issues and high interest rates caused many potential buyers to put their plans on pause in recent months. However, economic indicators are broadly trending positive and consumer confidence is growing.”
“The Bank of England’s recent rate cut is set to further energise the property market as we enter the second half of 2024.”
“In response, lenders have ignited a rate war, slashing offers to stay competitive. This shift is a game-changer for prospective buyers. Lower rates translate to reduced monthly payments and increased purchasing power, potentially opening doors for those previously priced out.”
Meanwhile, ASK Partners chief executive officer and co-founder Daniel Austin states: “Research suggests that the property market is not traditionally affected by general elections, but it is positive to see that the recent election has not had a negative impact.”
“We are continuing to see a month-on-month rise in house prices, which is hopefully the sign of an upward trend developing for the rest of the year. The market certainly appears to be showing signs of resilience.”
“Everyone is waiting in anticipation of what the new government will do to drive construction of new homes and unlock the planning system, and it is likely that initiatives announced in the coming months will give the market a further boost.”
Garrington Property Finders chief executive officer Jonathan Hopper adds: “In the space of a month, two handbrakes have come off the property market. Gone is the election uncertainty which suppressed activity in May and June, and last week’s decision by the Bank of England to cut the Base Rate for the first time in four years has finally allowed mortgage lenders to start reducing the cost of borrowing.”
“But even if it feels like the market is cleared for take-off, the most recent hard data suggests it’s still barely at taxiing speed. The number of completed purchases and the number or mortgage approvals both fell in June.”
“More recent anecdotal evidence shows that estate agents are starting to see buyer enquiries pick up as consumer confidence rises, but the summer holidays mean few agents’ phones are ringing off the hook yet, and on a regional level it’s still a very a mixed picture.”
