Halifax has reported another small monthly increase in house prices, with encouraging signs for the property market.
House prices went up by 0.8% in July, according to Halifax. The lender’s latest House Price Index, published on 7 August, revealed that annual growth was 2.3% – the highest since January 2024. The typical property now costs £291,268 compared to £289,042 in June.
‘Annual growth rose to 2.3% – the highest rate since the start of the year,’ says Amanda Bryden, Head of Mortgages at Halifax. ‘Last week’s Bank of England base rate cut, which follows 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 a lack of available properties continue to pose challenges for prospective homeowners.’
Regional house price growth
Northern Ireland has recorded the strongest annual house price growth in the UK, with prices rising by 5.8% annually in July, up from 4.1% in June.
House prices in the North West also showed strong growth, up 4.1% from the previous year, and Wales showed growth of 3.4%. The average house price rose to £221,102—the highest price growth seen since October 2022.
London still has the most expensive property prices in the UK, with prices in the capital averaging £536,052 – up 1.2% compared to last year.
Halifax anticipates a ‘modest upward trend’ in house prices for the remainder of this year against a backdrop of potential further base rate reductions.
Will there be more base rate cuts?
There is speculation that further base rate cuts could occur this year, with some financial experts even predicting an ‘economic revival’.
Several estate agents have said they are expecting increased market activity, and there are already more properties on the market than this time last year, according to Zoopla.