Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.

UK House Price Growth Slows to Weakest Rate Since 2023

Annual UK house price growth slowed to its weakest rate since November 2023 in July, according to the Lloyds House Price Index. Property values remained broadly unchanged during the month, with average prices just 0.1% higher than a year earlier.

The Lloyds data shows that monthly house price growth was flat in July, following a 0.2% increase in June. The average UK property price stood at £299,253, a decrease of £143 from June’s figure of £299,396. Lloyds reported that average house prices have remained relatively stable for almost two years and are just 0.5% higher than in November 2024.

The report highlights ongoing affordability challenges, with mortgage rates starting to edge higher again after easing earlier in the summer. Lloyds noted a modest increase in both mortgage approvals and completed transactions in June, following a larger dip in May. Housing demand was described as broadly steady, but activity continues to respond quickly to changes in mortgage rates.

There are significant regional differences in house price performance across the UK. Northern Ireland recorded the strongest annual growth at 7.4%, with an average property price of £231,131. Scotland saw prices increase by 3.6% year-on-year to £223,246, while Wales recorded growth of 1.6% to an average of £231,458.

In England, the strongest increases were seen in the northern regions. The North East experienced a 2.8% annual rise to £182,488, and the North West saw growth of 2.1% to £247,836. In contrast, southern England remained weaker, with average prices in the South East falling 2% year-on-year to £381,146. Greater London recorded a 1.3% annual decline, with the average price now at £533,930.

Lloyds expects house prices and market activity to remain relatively stable over the remainder of the year, with the outlook dependent on mortgage rates, inflation, and household confidence.