This annual growth rate is down from 2.7% in the 12 months to June 2024, data from the ONS shows
UK house prices rose by an average of 2.2%, to nearly £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 ONS shows.
Average house prices in England increased 1.6% to £306,000, were up by 2.0% in Wales to £218,000, and in Scotland rose 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 reduction in four years has helped trigger 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 reduction this week looks unlikely, the markets appear 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 declined for two consecutive 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 decline, with several sub-4% five-year mortgage deals now available. This, along with lower inflation, is fuelling demand.
Yopa chief executive officer Verona Frankish says: The UK property market has built up a real head of steam so far this year we are 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 is 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 cut is yet to be reported, she said.
With another base rate cut 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, she added.