Monthly figures remain static, says Lloyds HPI
House prices remained stable in July with an average property price of £299,253 compared with £299,396 in June, while annual growth of 0.1% marks the slowest rate of house price inflation since November 2023, according to the latest Lloyds House Price Index.
On a quarterly basis, house prices fell by 0.3%. They had risen 0.2% in June.
Amanda Bryden, head of mortgages at Lloyds, said the latest figures mark a long period of price stability. “Average house prices have remained relatively stable for almost two years, moving within a narrow range over that period and sitting just +0.5% higher than they were in November 2024. That trend has persisted even as buyers and sellers have faced a more uncertain economic backdrop this year.”
She said that affordability remains a challenge, especially as recent events in the Middle East have forced mortgage rates to edge up. “Sensitivity to borrowing costs is reflected in the latest industry data, which show a modest increase in both mortgage approvals and completed transactions in June, following a bigger dip in May. While housing demand remains broadly steady, activity continues to respond quickly to changes in mortgage rates.”
Looking ahead, Lloyds expects both market activity and house prices to remain relatively stable over the remainder of the year. “Developments will be shaped by both how mortgage rates respond to the outlook for inflation and wider household confidence,” she said.
Gareth Lewis, deputy CEO of specialist lender MT Finance, said low volumes were impacting prices. “The market is still stagnant with little movement in house prices largely because transaction volumes are low. With a lack of competitive tension in many transactions, prices aren’t shifting much either way. If you get the right property in the right location then this is not the case, but few meet this criteria,” he said.
However, Rachel Geddes, strategic lender relationship director, Mortgage Advice Bureau said it was the annual figure that was most revealing. “The monthly figure moves around for reasons that have nothing to do with the market – it’s the 0.1% annual increase that actually tells you what’s happening,” she said.
Northern Ireland sees strongest growth
Regionally, Northern Ireland continues to perform the strongest, with annual house price growth of 7.4%. In Scotland, prices rose 3.6 % and in Wales they grew 1.6%.
In England, the North East recorded annual growth of 8%, while the North West saw a 2.1% rise. Prices fell 2% in the South East and 1.3% in London.
Tom Bill, head of UK residential research at Knight Frank, said “Affordability continues to shape the house price map of the UK, with London and the south-east under-performing less expensive regions.”
