UK house prices stabilise amidst interest rate cuts

UK house prices stabilise amidst interest rate cuts

0:06 AM, 12th August 2024, About 4 months ago

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The average house price in England and Wales dipped slightly in July to £360,630, marking a modest 0.1% fall, the e.surv house price index for July reveals.

Despite monthly fluctuations, prices have remained relatively stable over the past quarter, defying affordability pressures and election uncertainty.

Annual house price declines have eased to 1.3%, a significant improvement from recent months.

This, coupled with the Bank of England’s recent interest rate cut and the government’s pledge to boost housing supply, is fuelling optimism for the market.

‘Housing market showed a slight decline’

Richard Sexton, a director of the firm, said: “In July, the England and Wales housing market showed a slight decline, with the average sale price of a home decreasing by approximately £500 (0.1%) to £360,630.

“This minor downturn pauses the incremental gains seen in the preceding months.

“The overall market performance has remained relatively stable over the past quarter.”

He says this is noteworthy because of the ongoing affordability challenges and uncertainties surrounding the General Election.

‘Most robust performance since June 2023’

Mr Sexton said: “The annual change in house prices, showing a decrease of 1.3%, marks the most robust performance since June 2023.

“This represents a significant improvement from the nearly 4% annual declines experienced in previous months.

“It suggests that the market has weathered the most challenging conditions, which peaked in late 2023, and is now on a gradual, albeit uneven, recovery path.”

Regional disparities persist

However, regional disparities persist, with the North East and North West leading price increases.

London, once a drag on the market, now appears to be supporting national growth.

Challenges remain as first-time buyers face significant affordability hurdles, and while the government’s housing targets are ambitious, their impact will take time, Mr Sexton says.


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