UK House Prices Remain Subdued for Third Month

Sales average £288,455 in June but recent mortgage rate cuts offer hope for the market. Stay informed with the latest data from Halifax.

UK house prices have shown little movement for the third consecutive month, with the average house price in June standing at £288,455, just a slight decrease of 0.2% from May, according to a report by Halifax. The market has been characterized by a shortage of properties, which has kept prices relatively high. Annual UK house prices growth remained steady at 1.6%, indicating a market that is subdued but showing signs of recovery.

UK House Prices Remain Subdued for Third Month | Halifax Report

The mortgage affordability challenge continues to be a major concern for new homebuyers and those nearing the end of their mortgage deals. However, there is hope on the horizon as the possibility of the Bank of England cutting interest rates in the coming months has led to a series of mortgage rate reductions by major lenders. This has provided some relief to buyers and borrowers, raising expectations for a more positive market outlook in the near future.

Barclays, Halifax, Santander, and other major lenders have recently announced reductions in their fixed-rate mortgages, with more expected to follow suit. This competitive environment among lenders is good news for borrowers, as it is likely to lead to further reductions in mortgage rates.

Analysis by Rightmove has shown that monthly mortgage costs for first-time buyers have increased significantly since the 2019 general election. However, it is expected that mortgage costs will gradually ease due to lower interest rates, rising incomes, and more moderate growth in house prices.

London remains the most expensive real estate market in the country, with the average home price reaching £536,306 in June. The south-east of England follows as the second most expensive region, while the north-east is the least expensive. Northern Ireland has seen the highest property price growth, with a 4% increase on an annual basis.

Looking ahead, the UK housing market is expected to remain stable, with modest price increases projected for the rest of the year and into 2025. The increase in property listings and the arrival of a new government are expected to bring added certainty to the market.

While the UK housing market continues to face challenges, the recent mortgage rate reductions and overall stability in house prices offer hope for a more positive outlook in the near future.