Average UK house price jumped by more than £2,200 last month, says data
THE average UK house price was more than £2,200 higher in July than it was in June, following three relatively flat months, according to an index.
Halifax said house prices increased by 0.8% month on month and by 2.3% annually.
Across the UK, the average house price in July was £291,268, up from £289,042 in June.
The Bank of England base rate was cut from 5.25% to 5% last week, in a move which property professionals said could bring a boost to the autumn housing market.
Amanda Bryden, head of mortgages, Halifax, said: “In July, UK house prices increased by 0.8% on a monthly basis, following three relatively flat months.
“The average house price in the UK is £291,268, up over £2,200 compared to the previous month.
“Annual growth rose to 2.3%, the highest rate since the start of this year.
“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.
“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.”
Holly Tomlinson, a financial planner at Quilter, said “a feeling that rates are going in the right direction” will help people decide to take the leap back into the market.
She said: “Those on the fence about selling their home may also feel the time is now right.
“The autumn may therefore prove to be busier than anticipated.”