UK house price growth slows to 0.1% on-year in July - Lloyds index
UK house prices were flat in July, with annual growth slowing to its weakest pace since late 2023 as affordability pressures and higher mortgage rates continued to weigh on the market.
According to the Lloyds house price index, formerly known as the Halifax house price index, published on Friday, the average UK property price was unchanged month-on-month at £299,253 in July, following a 0.2% increase in June. It was lower than the FXStreet-cited consensus of a 0.1% increase for July.
On an annual basis, house prices rose 0.1%, slowing sharply from 0.7% in June and marking the weakest rate of annual growth since November 2023. It fell far below the consensus of a 0.4% rise.
On a quarterly basis, house prices fell 0.3%.
Amanda Bryden, head of mortgages at Lloyds, said the housing market had remained "steady" despite a more uncertain economic backdrop.
"Affordability remains a challenge for many would-be buyers and, following recent events in the Middle East, mortgage rates have edged higher again after easing earlier in the summer," Bryden said.
She added that recent industry data showed a modest increase in mortgage approvals and completed transactions in June after a sharper decline in May, highlighting the market’s sensitivity to changes in borrowing costs.
Looking ahead, Bryden said Lloyds expects housing market activity and house prices to remain "relatively stable" through the rest of the year, with mortgage rates, inflation and consumer confidence likely to remain the key drivers.
Regionally, Northern Ireland continued to record the strongest annual house price growth, with prices rising 7.4% to an average of £231,131. Scotland followed with annual growth of 3.6% to £223,246, while prices in Wales increased 1.6% to £231,458.
Within England, the North East was the strongest-performing region, with annual growth of 2.8% taking average prices to £182,488, ahead of the North West, where prices rose 2.1% to £247,836.
Southern England remained the weakest area of the market. House prices in the South East fell 2.0% year-on-year to £381,146, while Greater London recorded a 1.3% annual decline to £533,930.
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