UK house prices climb at fastest rate in six months
UK house prices rose in July, up by +0.4% (£1,080 in cash terms), the biggest monthly increase since the start of this year, new data from Halifax shows.
The average house price is now £298,237, +2.4% higher than a year ago. While this news may be disheartening for first-time buyers, there are several other factors which might make it easier to get onto the property ladder.
“While the national average remains close to a record high, it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type,” said Amanda Bryden (Head of Mortgages at Halifax).
Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving, she said.
“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.”
Homeowners coming to the end of fixed-rate mortgage deals
The second half of this year will also see a notable rise in homeowners coming to the end of fixed-rate deals taken out during the pandemic-era property boom, a period marked by ultra-low interest rates and soaring house prices.
“While most borrowers coming to the end of five-year fixed-rate mortgage deals will see their monthly repayments rise, the extent of this will vary across households,” said Bryden.
“Those coming off a two-year fixed-rate are very likely to see their monthly payments come down, as they originally locked in rates during the peak that followed the 2022 mini-budget. 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.”
