The average UK house price showed no movement in July compared with the previous month, easing from 0.2% growth in June, according to the monthly Lloyds house price index. The typical property value stood at £299,253, marking the weakest annual rise since November 2023 at 0.1%.
Regional Variations
Northern Ireland saw the strongest price growth, with values climbing 7.4% year on year to £231,131. Scotland recorded 3.6% growth, while Wales saw a 1.6% rise. In contrast, southern England experienced declines, with the south east down 2% and Greater London dropping 1.3%.
Market Outlook
Amanda Bryden, head of mortgages at Lloyds, said the housing market "remained steady" in July. She noted that average prices have stayed relatively stable for almost two years, moving within a narrow range and sitting just 0.5% higher than in November 2024.
Bryden added: "Affordability remains a challenge for many would-be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer." Lenders have increased mortgage rates in recent weeks, despite the base rate remaining at 3.75%.
The Bank of England maintained rates last week but warned inflation was expected to climb by year's end due to the Iran war, indicating it was prepared to raise rates if the conflict persisted. Bryden concluded: "Looking ahead, we expect market activity and house prices to remain relatively stable over the remainder of the year."
