UK house prices rise in July after three flat months - Halifax

7th Aug 2024 07:40

(Sharecast News) - UK house prices rose in July after three flat months, according to figures released on Wednesday by Halifax.

Prices were up 0.8% on the month, coming in comfortably ahead of expectations for 0.3% growth.

On the year, house prices rose 2.3% in July following a 1.9% increase in June. This marked the highest annual growth rate since January 2024.

The average house price stood at £291,268 compared to £289,042 in June.

Amanda Bryden, head of mortgages at 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."

Ashley Webb, UK economist at Capital Economics, said: "After three months of stagnation, the bigger-than-expected rise in the Halifax house price index in July provides further evidence that house prices are bouncing back from the slight rise in mortgage rates in the first half of this year.

"What's more, the recent fall in the 2-year interest swap rate from 4.25% at the end of July to 4.08% now due to investors' US recession fears poses a further upside risk to our forecast for house prices to grow by just 1.0% in 2024."