House prices increased by 0.8% in July, according to Halifax which expects this ‘modest upward trend’ to continue for the rest of the year.
Over the last year, according to the Halifax House Price Index, prices grew by 2.3% which is the highest annual growth since January.
It means the average UK home is now £291,268 which is over £2,200 higher than the typical £289,042 recorded in June.
Halifax said Northern Ireland continued to record the strongest annual house price growth in the UK. Prices rose by 4.1% in July and over the year have climbed by 5.8%.
Amanda Bryden, head of mortgages, Halifax, said: “Last week’s Bank of England 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.”
Along with Northern Ireland, house prices in the North West of England also recorded strong growth. Here they rose 4.1%, compared to the previous year, properties here now average £232,489.
The only region or nation to record a fall was Eastern England. Properties in this area fell by an average of 0.4% over the year to July.
Estate agent, Amy Reynolds, head of sales at Antony Roberts in Richmond, said she had noticed activity pick up recently.
“With an unexpectedly busy start to August in our offices, the long-awaited cut in interest rates and removal of any election uncertainty has clearly gone down very well with prospective buyers and sellers,” she said.
“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.”
