UK house prices increased by 0.8% in July, a reversal from the 0.2% decline observed in June. This marks the highest annual growth since January, with the average house price now at £291,268, reflecting a rise of £2,226 within the month.
Regional Growth and Declines
The property market’s performance varied regionally, with the North West experiencing the most substantial growth at 4.1%. In contrast, Eastern England saw a slight dip of 0.4%, making it the only region with a decrease in house prices.
Influences on Market Performance
Sarah Coles, head of personal finance at Hargreaves Lansdown, highlighted the factors influencing the recent uplift: “After earlier challenges, July saw a resurgence in the property market, likely spurred by the cut in interest rates this month. Although the price surge isn’t as dramatic as previous years, it suggests a potentially vibrant autumn for the housing market.” Coles pointed out that while this growth is positive, the lingering high rates and potential changes in capital gains tax could dampen the enthusiasm of buy-to-let investors.
Future Market Outlook
Liz Edwards from Finder.com added her perspective on the market’s new dynamics: “The cut in the base rate from 5.25% to 5% had already been anticipated by many lenders, which helped stabilise the market. With mortgage rates easing, we’re seeing signs of market stabilisation.”
Daniel Austin, CEO and co-founder at ASK Partners, also commented on the broader implications: “Despite concerns that general elections might negatively impact the market, we’ve observed a steady rise in house prices month-on-month, indicating resilience and a potential upward trend for the rest of the year.”
These insights collectively point towards a cautiously optimistic outlook for the UK property market, bolstered by recent financial policy changes and an overall increase in market activity. However, challenges remain, particularly concerning affordability and potential regulatory changes that could affect investor sentiment and market dynamics.
Halifax has published its house price index for July: july-2024-halifax-house-price-index.pdf
