UK house prices increased by 0.4% in July according to the latest Halifax house price index, the biggest monthly growth since the start of the year.
The average price now stands at £298,237, an increase of 2.4% year-on-year.
On a regional level, Northern Ireland remained the strongest performing, with house prices increasing by 9.3% compared to July last year. Scotland also saw strong growth, with the average house price increasing by 4.7% to £215,238. Prices increased in Wales too, up 2.7% year-on-year to £227,928.
Among the English regions, the North West and Yorkshire and the Humber saw the highest rates of annual growth, with house prices up 4.0% to £242,293 and £215,532 respectively.
Meanwhile, the South West, London and the South East only reported moderate growth with prices rising by 0.2% and 0.5% respectively. London remains the most expensive region in the UK, with house prices averaging £539,914.
Amanda Bryden, head of mortgages at Halifax, said: “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.”
“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.”
Amanda continued: “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.”
