UK monthly house price rise accelerates in July to 0.4% — Halifax

The average UK house price rose 0.4% in July, faster than in June, though the annual growth rate eased, Halifax reported on Thursday.

The Halifax house price index found that the average UK house price increased by 0.4% in July to GBP298,237, accelerated from a 0.1% rise in June to GBP297,157 but slowed from a 0.7% increase in July 2024.

The average house price is now 2.4% higher over the past year, slowed from a 2.7% annual growth rate in June.

"While the national average remains close to a record high, it's worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type," said Amanda Bryden, head of mortgages at Halifax.

"Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.

"Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well. We expect house prices to follow a steady path of modest gains through the rest of the year."

Northern Ireland saw the UK's strongest annual price growth again, with the average house price increasing 9.3% to GBP214,832.

Scotland recorded 4.7% annual growth in July to GBP215,238, while property prices in Wales were up 2.7% over the past year at GBP227,928.

The South West of England held the lowest annual growth rate at 0.2%, with an average house price of GBP302,306.

Bryden added: "The second half of this year will also see a notable rise in homeowners coming to the end of fixed-rate deals taken out during the pandemic-era property boom; a period marked by ultra-low interest rates and soaring house prices.

"While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households. Those coming off a two year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget.

"We're unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets."