UK house prices rose by an average of 2.2%, to £290,000, in the year to July, according to official data.
This annual growth rate is down from 2.7% in the 12 months to June 2024, data from the Office for National Statistics shows.
Average house prices in England rose 1.6% to £306,000, were up by 2.0% in Wales to £218,000, and in Scotland lifted 6.0% to £199,000, over the year to July.
Commenting on the data, Atom bank head of mortgages Richard Harrison says: “There is clear momentum building in the housing market currently. The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold.”
“Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers. Moneyfacts data shows that average interest rates for two- and five-year fixed rates have fallen for two straight months, a trend that borrowers will hope to see continue.”
Fairbridge Capital co-founder and director Aman Bajwa says: “Today’s figures reveal that the property market has shrugged off the summer lull, and is showing no signs of slowing down, as we enter what is traditionally a busier period. Investors are getting back into the property market as interest rates fall, with several sub-4% five-year mortgage deals now available. This, paired with lower inflation, is fueling demand.”
Yopa chief executive officer Verona Frankish states: “The UK property market has built up a real head of steam so far this year we’re now seeing consistent levels of monthly and annual house price growth, which demonstrates that buyers are not only returning to the market, but they are doing so with greater confidence.”
“It’s also important to note that these latest figures are for July and so the boost to market sentiment that has come following August’s interest rate reduction is yet to be reported.”
“With another base rate reduction widely expected to materialise tomorrow, the outlook is very positive indeed and we expected 2024 to be a far more positive year compared, as a result.”
Propertymark chief executive officer Nathan Emerson adds: “It is reassuring to see further progress within the housing market as we continue to witness a consistent trend of growth as the year plays out. Overall, 2024 has proven to be transformative for the housing market with it facing a myriad of challenges at the start of the year and gathering pace to a far more upbeat performance as demonstrated by these latest figures.”
“Propertymark remains keen to see the UK Government kick start their house building programme to alleviate current pressures on housing demand and there is also a massive interest from those who aspire to buy to see and understand what support may be offered to boost their ability to get a footing on the housing ladder.”
