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UK property prices soared 15.5% in year to July

Christina Hoghton
Written By:
Christina Hoghton
Posted:
Updated:
27/02/2024

House prices rose rapidly in the 12 months to July, but the market is beginning to show signs of slowing down

UK annual house price inflation doubled from 7.8% in June to 15.5% in July, according to figures published by the Office for National Statistics.

The average property price rose by £6,000 between June and July alone to reach £292,000 – £39,000 higher than a year earlier.

Iain McKenzie, CEO of The Guild of Property Professionals, said: “The cost of living is surging across almost every aspect of our lives, but these unprecedented rises in house prices continue to defy expectations.

“The latest figures showing the highest annual growth rate in almost 20 years will be particularly discouraging for first-time buyers, with many already struggling to save for a large enough deposit.

“To put it into perspective, the average house will now set you back almost £40,000 more than it did a year ago. That’s £40,000 extra that buyers will need for a mortgage to get them on the property ladder.

“The coming months will be crucial to see just how this trend plays out.”

James Briggs, head of personal finance intermediary sales, at Together, added: “With the challenging economic outlook and recession expected by the end of the year, household finances are continuing to come under pressure.

“Not only are first-time buyers at risk of being priced out of the market altogether, but renters are facing steeper rent and household bills this year; caught in a cycle of affordability and uncertainty.

“With an emergency budget set to take place in a couple of weeks, all eyes will be on Prime Minster Liz Truss to address the issues and challenges within the housing and mortgage market.”

Home nations

The average house price in Scotland increased by 9.9% over the year to July 2022, reaching £193,000 in July 2022.

The average house price in Wales rose by 17.6% over the year to July 2022, to a record level of £220,000.

In England average house prices increased by 16.4% over the year to July 2022, to a record £312,000.

The average house price in Northern Ireland increased by 9.6% over the year to Quarter 2 (Apr to Jun) 2022. Northern Ireland remains the cheapest UK country in which to purchase a property, with the average house price at £169,000.