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House prices flat in June, says Halifax

House prices flat in June, says Halifax
Christina Hoghton
Written By:
Christina Hoghton
Posted:
05/07/2024
Updated:
05/07/2024

UK house prices remained stable in June, dipping slightly by 0.2%% compared to May.

That’s according to Halifax, which recorded an annual rate of house price growth unchanged from last month at 1.6%.

The typical UK home now costs £288,455, according to the lender’s House Price Index.

Amanda Bryden, head of mortgages at Halifax, said: “UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than £500 in cash terms.”

On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at £288,455.

“While, in the short term, the housing market is delicately balanced and sensitive to the pace of change to base rate, based on our current expectations, property prices are likely to rise modestly through the rest of this year and into 2025,” Bryden added.

Sarah Coles, head of personal finance at Hargreaves Lansdown, added: “Lower mortgage rates may hold the key to renewed buyer enthusiasm, but we’re unlikely to get those in a great hurry either. The Bank of England is expected to cut rates in August or September, but we’re only expecting a couple of cuts this year, and even after that, the bank is modelling very gradual cuts in the coming years.

“By the middle of 2026, it says the bank rate may still be at 4%. It means anyone holding out hope for ultra-low rates could be disappointed.

“Would-be buyers who are sitting on a deposit, and can’t buy right now, are likely to be desperately frustrated. And while there’s little they can do but sit and wait, they can at least make sure their deposit is working as hard as possible in a competitive easy-access savings account.”

Across the UK

Northern Ireland recorded the strongest property price growth of any nation or region in the UK, rising by 4.0% on an annual basis in June, to £192,457.

In England, the steepest rate of house price inflation is found in the North West, up by 3.8% over the last year to £231,351.

House prices in Scotland also increased, with a typical property now costing £204,663, 1.6% more than the year before. In Wales, house prices grew annually by +2.7% to reach £220,197.

Eastern England was the only region or nation across the UK to register a fall in house prices over the last year, where they now average £328,747, down -0.9% in June on an annual basis.

London continues to have the most expensive property prices in the UK, now averaging £536,306, up (+0.9%) compared to last year.