UK house prices rise 0.8% in July
The latest Halifax (https://www.halifax.co.uk/) House Price Index shows that house prices have begun to strengthen following a rather stagnant summer. According to this morning’s figures, average house prices increased by +0.8% in July while the annual growth rate is now +2.3% – the highest since January 2024.
National and regional house prices
Northern Ireland continues to record the strongest property price growth of any nation or region in the UK. Prices have risen by +5.8% on an annual basis in July, up from +4.1% the previous month and the highest increase since February 2023. The average price of a property in Northern Ireland is now £195,681.
House prices in the North West also recorded strong growth. They are up +4.1%, compared to the previous month, properties here now average £232,489. In Wales, house prices grew +3.4% to £221,102 – the highest price seen since October 2022.
Scotland saw a rise in house prices, a typical property now costs £205,264, +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. They are now averaging £536,052, up (+1.2%) compared to last year.
A warning for Harlow homeowners
Harlow is situated in the East of England region. This is the only region to see a drop in property prices.
Co owner Lee Venables says: ” Whilst the East of England saw a 0.4% drop, I am afraid that Harlow property faired slightly worse than this. We have seen a 1.25% drop during July. This though is mainly down to ridiculous over pricing that has been going on for a couple of years. Harlow property that is priced correctly sells fast. I believe that if all Harlow property had been priced correctly, we would actually have seen a rise in the prices of around +0.5%.”
What do The Halifax say:
“In July, UK house prices increased by +0.8% on a monthly basis, following three relatively flat months. The average house price in the UK is £291,268, up over £2,200 compared to the previous month.
“Annual growth rose to +2.3%, the highest rate since the start of this year.
“The recent 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.”
What do Jukes Estate Agents Harlow say:
“A number of buyers switched off early for summer due to the election, but that has created pent-up demand that will propel activity when the autumn market begins next month. Demand will be further boosted by the recent rate cut and the prospect of another one this year, which we think will produce average UK house price growth of 3% in 2024.”
Co owner Geoff Flewers says:
“We have had an unexpectedly busy start to August in our offices. We have had the long-awaited cut in interest rates. Also, the removal of any election uncertainty has clearly gone down very well with prospective buyers and sellers.
“The hot, sunny weather, combined with buyers who may have delayed their plans now wanting to get on with their moves this year, is boosting activity and enquiries. People have long been talking about the prospect of rate cuts and now the first of these is a reality, we are hopeful this activity will continue into the autumn.
“However, buyers need to be careful what they wish for as cheaper mortgages will almost certainly mean higher asking prices. If we see a flurry of new applicants coming back to the market, encouraged by cheaper mortgage rates, then these higher prices are likely to be achieved.”