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UK house prices rose 0.4% in July

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The annual pace of change has slowed but property prices are still rising, with Wales and the North West leading the way
UK house prices rose 0.4% in July

House prices rose in July by 0.4% to reach an average of £261,221, said Halifax.

The bank said this rise added £1,122 to the cost of the average property, pulling back some of the ground lost during June when prices dipped 0.6%.

Annual property price growth has slowed a little and now stands at 7.6%, down from 8.7% in June, as the market cooled slightly following the end of the full Stamp Duty holiday.

Russell Galley, managing director of Halifax, said: “This easing was somewhat expected given the strength of price inflation seen last summer, as the market began its recovery from the first lockdown, and with activity supported by the start of the stamp duty holiday. In cash terms, typical prices now stand at just over £261,000, a little below May’s peak but still more than £18,500 higher than a year ago.

“Overall, assuming a continuation of recent economic trends, we expect the housing market to remain solid over the next few months, with annual price growth continuing to slow but remaining well into positive territory by the end of the year.”

Top performers

Wales, the North West and Yorkshire & Humberside continue to lead the way, said Halifax, posting the strongest annual rates of house price inflation, whilst the South West also recorded a double-digit year-on-year rise.

The 13.8% annual increase in house prices in Wales was the strongest growth recorded since March 2005, whilst for Yorkshire the 11% gain was also the highest for over 16 years.

Lewis Shaw, founder of Mansfield-based Shaw Financial Services, said: “Without a shadow of a doubt, house prices are going to continue to rise, albeit at a reduced rate. We are facing the largest gap between buyer enquires and new or available housing stock since 2013 and it is this supply/demand imbalance, along with very cheap mortgages, which is fuelling the current price growth.

“Of course if there is a big jump in unemployment figures once the furlough scheme is unwound, this may lead to a momentary stumble.”

London continues to lag all regions in terms of annual inflation (+2.5%), whilst gains in the South East and Eastern England remain amongst the lowest in the UK.

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