House prices increased by 0.4% in July pushing the typical property value in the UK up to £298,237, according to Halifax.
Over the last year average house prices have climbed by 2.4% according to the mortgage lender. This a little lower than the annual rise of 2.7% in June.
According to Amanda Bryden, head of mortgages, Halifax, the 0.4% rise in July is equivalent to £1,080 in cash terms.
She said, whilst the national average house price was close to a record high, prices did vary across the country depending on various factors, not least location and property type.
“Challenges remain for those looking to move up or onto the property ladder,” Bryden said. “But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.
“Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.
“We expect house prices to follow a steady path of modest gains through the rest of the year.”
Looking ahead, Bryden said the second half 2025 will see a ‘notable’ rise in homeowners coming to the end of fixed-rate mortgage deals taken out during the pandemic era property boom when interest rates were low and house prices soaring.
Those who fixed into five year deals during this time will see their repayments rise. But those coming off two-year fixes, secured when prices were high, will see their monthly repayments come down.
Will this influence house prices? Bryden said: “We’re unlikely to see a significant impact on house prices, but it may influence market dynamics if prospective home movers choose to delay plans as a result of tighter budgets.”
Thomas Lambert, financial planner at Quilter, said the growth in house price in July came after a subdued first half of the year, suggesting some momentum was building again. Indeed, it was the biggest monthly increase since the start of the year.
He added: “As we move towards autumn, the stamp duty changes will begin to fade into the rear-view mirror, and some of the recent hesitancy could translate into renewed activity, particularly if the Bank of England signals that more rate cuts are still on the table for later in the year.
“The path ahead will depend heavily on what happens next with interest rates and household finances.”
