Average property price virtually unchanged month-on-month, but annual growth slows to weakest pace since late 2023
The average UK house price stood at £299,253 in July, down just £143 on the previous month, according to the latest data from Lloyds.
Annual growth slowed to 0.1%, the weakest rate recorded since November 2023.
"The UK housing market remained steady in July, with the average property price effectively unchanged over the month (-£143), following a slight rise of +0.2% in June," said Amanda Bryden, head of mortgages at Lloyds. "At £299,253, the average house price is now +0.1% higher than a year ago, the slowest rate of annual growth since November 2023."
Bryden (pictured right) noted that prices have held within a narrow band for nearly two years, sitting only 0.5% above their November 2024 level despite a more uncertain economic environment.
On affordability and rates, she pointed to continued pressure on prospective buyers: "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."
Industry data for June showed a modest recovery in mortgage approvals and completed transactions following a sharper fall in May, though Bryden cautioned that activity remains highly sensitive to rate movements.
Looking to the second half of the year, Lloyds expects both prices and market activity to remain broadly stable.
"Developments will be shaped by both how mortgage rates respond to the outlook for inflation and wider household confidence," Bryden said.
"The Bank of England’s decision to hold interest rates for the fifth consecutive meeting is creating calm and stability, which is encouraging buyers and sellers to transact," added Mark Harris (pictured right), chief executive of mortgage broker SPF Private Clients.
“First-time buyers will be encouraged as house prices remain steady rather than soar. Lenders are working hard on offering solutions to those trying to get on the ladder for the first time, which is leading to a small improvement in their numbers.”
According to the latest Lloyds House Price Index, Northern Ireland recorded the strongest annual house price growth in the UK at 7.4%, bringing the average property price to £231,131. Scotland posted growth of 3.6% year-on-year, with the average price reaching £223,246, while Wales saw annual growth of 1.6%, taking the typical property value to £231,458.
Within England, the stronger-performing markets are concentrated in the north. The North East saw annual growth of 2.8%, with the average price reaching £182,488, and the North West recorded a 2.1% rise to £247,836.
Southern England continues to lag. The South East recorded an annual decline of 2%, with prices averaging £381,146, while Greater London fell 1.3% to £533,930.
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