9:18 AM, 7th August 2024, About 5 months ago 1
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House prices in the UK rose by 0.8% in July, halting a three-month plateau, Halifax reveals.
The average property value now stands at £291,268, marking a £2,200 increase compared to June.
Annual growth has also accelerated to 2.3%, the highest rate since January 2024.
Despite this uptick, the lender cautions that affordability issues and limited housing supply remain hurdles for potential homeowners.
Amanda Bryden, the head of mortgages at Halifax, said: “Last week’s Bank of England base rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder.
“However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.”
She adds: “Against the backdrop of lower mortgage rates and potential further Base Rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year.”
Northern Ireland remains the UK’s top performer for house price growth with an increase of 5.8%, while Eastern England is the only region to record a decline – prices fell by 0.4%.
London property values climbed 1.2% year-on-year, maintaining their position as the most expensive housing market.
Sarah Coles, the head of personal finance at Hargreaves Lansdown, said: “After a bit of a washout for the property market earlier this summer, the sun finally came out in July.
“This could be a sign of things to come because the interest rate cut this month could help warm buyers up for a hotter autumn.
“July’s price growth came alongside a slight easing in mortgage rates, as the market priced in an August rate cut.”
She added: “The cut came on cue and is likely to mean modest price growth through the rest of 2024.
“However, it’s not going to be a patch on the boom of recent years.”
Propertymark’s chief executive, Nathan Emerson, said: “It is extremely positive to see further growth within the housing sector, especially following what has been a tough time across the last few years for consumers.
“With inflation now down at targeted levels and with a very welcome cut in interest rates last week, Propertymark is extremely optimistic to see a real uplift across the housing sector over the coming months.
“Assuming the economy remains stable in September, it would be good to see the central bank continue to gradually cut interest rates as conditions permit.
“It is a case of all eyes on the UK Government regarding their housebuilding programme, as well as learning more regarding support for potential first-time buyers.”
Landlord in Knots
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Sign Up11:34 AM, 8th August 2024, About 5 months ago
I recall years ag that the director of Hargreaves Lansdown said that He did not own his property as there were better investments such as thew FTSE 100, and that buying residential property was not a good investment. I wonder if He is still renting from a wiser landlord.