Market subdued but overall activity recovering
Average house prices in the UK remained roughly stable in June, according to Halifax.
The bank’s latest house price index recorded a slight monthly drop of 0.2% and a quarterly drop of 0.5%, bringing the average price of a UK home to £288,455.
The annual rate of house price growth stood at 1.6%, unchanged from last month.
Amanda Bryden, head of mortgages at Halifax, noted that it was the third successive month that house prices had remained “relatively flat”, with the slight fall equivalent to less than £500 in cash terms.
“This continued stability in house prices – rising by just +0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering,” she said.
“For now, it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.
“Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals.
“This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.
>> Read more: UK house prices edge up in June, Nationwide figures show
“While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.”
Northern Ireland recorded the highest rate of property price growth, up 4% on an annual basis and 3.3% on the previous month.
In England, the steepest rate of house price inflation was in the North West, up by 3.8% over the past year, while Eastern England was the only region to register a decline on the year, down 0.9%.
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