Property values in the UK saw a significant increase of 0.8 per cent in July, marking the fastest growth this year and indicating a return of confidence in the market. According to the latest data from the Halifax house price index, the average house price in the UK now stands at £291,268, up over £2,200 compared to the previous month. This growth has been attributed to the Bank of England’s recent rate cut, which has been deemed „encouraging“ for potential buyers.
Northern Ireland led the way in terms of annual house price growth in August, with prices rising by 5.8 per cent on an annual basis in July. This marks the highest increase since February 2023, bringing the average house price in Northern Ireland to £195,681. Wales and Scotland also saw growth in house prices, with increases of 3.4 per cent and 2.1 per cent respectively over the last year. In North West England, prices rose by 4.1 per cent.
London continues to have the most expensive property prices in the UK, now averaging £536,052, which is a 1.2 per cent increase compared to 2023. However, the East of England was the only region to record a fall in house prices, with a decrease of 0.4 per cent.
Amanda Bryden, Halifax’s head of mortgages, expressed optimism about the future of the housing market, stating that house prices are expected to continue on a modest upward trend for the remainder of the year. She highlighted the impact of lower mortgage rates and potential further base rate reductions in driving this growth.
Nathan Emerson, of Propertymark, echoed this sentiment, emphasizing the positive growth within the housing sector and expressing optimism for the future. He emphasized the importance of continued support for first-time buyers and the need for the UK Government to focus on their housebuilding program.
Sam Mitchell, chief executive of online house seller Purplebricks, highlighted the impact of the Bank of England’s interest rate cut on buyer confidence. He emphasized the need to lower barriers to homeownership for first-time buyers and called for action to address issues in the rental market.
Overall, the recent growth in property values in the UK is a positive sign for the housing market, with factors such as lower mortgage rates and potential further rate cuts contributing to this trend. As the market continues to evolve, it will be important for policymakers and industry professionals to work together to support prospective homeowners and ensure a stable and thriving housing sector.