UK house price growth slowed further in July, with the latest Lloyds House Price Index showing a market that remains stable but subdued. The index also found that the average UK house price stood at £299,253 in July. Overall, prices were the same the same month-on-month.
Key figures to note:
- Average UK house price: £299,253
- Monthly change: 0.0%, following a +0.2% rise in June
- Annual change: +0.1%
- Trend: Northern Ireland continues to perform the strongest in terms of annual growth with +7.4%
Why has house price growth slowed down?
Mortgage affordability remains one of the biggest influences on the market.
Although borrowing costs had eased earlier in the summer, mortgage rates have since come renewed pressure amid wider economic and geopolitical uncertainty.
For conveyancers, this backdrop is still relevant as it can drive transaction volumes and the pace at which deals progress, even where agreed prices remain relatively stable.
Rob Gurney, Managing Director at Ochresoft comments:
“The latest Lloyds House Price Index shows the UK housing market continuing to tread water, with annual price growth slowing to just 0.1% and values remaining broadly stable despite ongoing economic uncertainty. While affordability pressures and mortgage rate sensitivity continue to influence buyer behaviour, a steady market should provide at least some reassurance for conveyancing firms, with transaction volumes expected to remain resilient even as house price growth moderates.”
What could happen to UK house prices next?
The outlook is likely to depend on heavily mortgage rates and wider economic conditions.
If borrowing costs fall, buyer demand could strengthen as affordability improves. If rates remained elevated, the market may continue to see limited price growth.
For now, the Lloyds data points to a housing market that is broadly holding its ground rather than moving sharply in either direction.
The next Lloyds House Price Index is scheduled to release on Monday 7th September.
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