UK house prices remain stable despite the current economic challenges. Here’s what’s happening in the property market, along with our expert view on what it all means for home buyers and sellers.

The UK housing market remained steady in July, despite renewed economic uncertainty and a slight increase in mortgage rates. Prices remained the same, following a modest 0.2% rise in June, according to the latest Lloyds House Price Index.

The average UK property price now stands at £299,253. House prices were 0.1% higher than a year ago, which is the slowest rate of annual house-price growth since November 2023.

However, figures suggest that the housing market remains relatively resilient. ‘Average house prices have remained relatively stable for almost two years, moving within a narrow range over that period and sitting at just 0.5% higher than they were in November 2024,’ says Amanda Bryden, Head of Mortgages at Lloyds. ‘That trend has persisted even as buyers and sellers have faced a more uncertain economic backdrop this year.

Affordability challenge for home buyers

‘Affordability remains a challenge for many would-be buyers,’ adds Bryden. ‘Following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer.’

In England, the strongest growth was in northern regions. Prices rose by 2.8% in the North East and by 2.1% in the North West.

By comparison, several southern regions experienced annual price falls. The South East recorded a 2% decline, taking the average property price to £381,146. Greater London saw prices fall by 1.3% to an average of £533,930.

More mortgage approvals

Housing market activity showed some signs of improvement in June. Mortgage approvals for house purchases increased by 2.9% to 58,200, although they remained 10% below the same period last year. UK residential property transactions also rose slightly.

MB Associates’ Sales & Operations Director, Les Pick, says buyers and sellers are still motivated. ‘These figures reflect a housing market that continues to demonstrate resilience despite ongoing economic and affordability pressures. While headline house price growth has slowed, we're still seeing motivated buyers and sellers transact, particularly when they're supported by good-quality advice.

Pick adds: ‘Although higher mortgage rates remain a challenge for some borrowers, competition between lenders is still strong and there are far more solutions available than many buyers realise. Looking ahead, the direction of inflation and swap rates will be key in determining where mortgage pricing goes next.

Should you buy a property?

So, is now a good time to buy? It depends on your situation, but seeking bespoke advice from an experienced mortgage broker is a wise move. ‘For those purchasing a home based on their personal circumstances rather than trying to time the market, there are still plenty of opportunities,’ says Pick. ‘This is a market that rewards a lot of property research and a considered approach to choosing a property. Expert mortgage advice has a crucial role in helping buyers navigate an increasingly complex lending landscape once they have found their new home.’

Lloyds expects market activity and house prices to remain relatively stable for the rest of the year. Much will depend on inflation, property market confidence and the direction of mortgage rates.