The average London house price was 1.2 per cent higher in July than they were last year, with the average property price in the capital now at £536,052.
UK house prices are up 0.8 per cent month on month and and 2.3 per cent annually, according to the Halifax house price index. Across the UK, the average house price in July was £291,268, up from £289,042 in June – adding over £2,200 to their value.
The Bank of England base rate was cut from 5.25 per cent to 5 per cent last week, in a move which property professionals said could bring a boost to the autumn housing market.
“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,” said Amanda Bryden, head of mortgages at Halifax.
“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.”
Matt Thompson, head of sales at London-based estate agent Chestertons, suggested the introduction of sub-4 per cent mortgage rates by lenders has helped boost buyer confidence.
Holly Tomlinson, a financial planner at wealth manager 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.”
Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “It is extremely positive to see further growth within the housing sector, especially following what has been a tough time across the last few years for consumers.
“Those on the fence about selling their home may also feel the time is now right.”
“With inflation now down at targeted levels and with a very welcome cut in interest rates last week, Propertymark is extremely optimistic to see a real uplift across the housing sector over the coming months.
“Assuming the economy remains stable in September, it would be good to see the central bank continue to gradually cut interest rates as conditions permit.”
Purplebricks chief executive Sam Mitchell said: “The growing confidence we’ve seen take hold of the housing market in recent weeks has been supercharged by the Bank of England’s interest rate cut.
“With lenders already slashing mortgage rates in response to last week’s decision, buyers are beginning to move ahead with purchasing decisions they have been putting off for months.”
Iain McKenzie, chief executive of the Guild of Property Professionals, said: “We’re optimistic about the market’s direction for the remainder of the year. The combination of lower mortgage rates, potential further base rate reductions, and steady price growth creates a favourable environment for both buyers and sellers.”
Here are average house prices and the annual change, according to Halifax. Regional annual change figures are based on the most recent three months of approved mortgage transaction data:
Area |
Average house price in July |
Annual increase % |
East Midlands |
£239,448 |
0.6 per cent |
Eastern England |
£330,282 |
- 0.4 per cent |
London |
£536,052 |
1.2 per cent |
North East |
£171,663 |
2.6 per cent |
North West |
£232,489 |
4.1 per cent |
Northern Ireland |
£195,681 |
5.8 per cent |
Scotland |
£205,264 |
2.1 per cent |
South East |
£386,468 |
1.3 per cent |
South West |
£301,359 |
1.1 per cent |
Wales |
£221,102 |
3.4 per cent |
West Midlands |
£253,649 |
1.8 per cent |
Yorkshire and the Humber |
£206,48 |
1.8 per cent |
