Editor's note: This brief was summarised by The Property AI Newsroom from a report by The Negotiator. Read the original article for full details.
UK House Prices Remain Flat as Market Growth Slows to Three-Year Low
UK house prices were unchanged in July, with the market showing the slowest annual growth since November 2023, according to the latest Lloyds data. The average property price stood at £299,253 in July, compared to £299,396 in June, reflecting a static market following a 0.2% rise the previous month.
Lloyds data, previously released under the Halifax brand, shows that prices are up only 0.1% compared to the same time last year. The annual growth rate is now at its lowest point in almost three years. Northern Ireland recorded the strongest annual rise in Britain at 7.4%.
The report highlights that average house prices have remained relatively stable for almost two years, moving within a narrow range and sitting just 0.5% higher than in November 2024. The market has persisted in this pattern despite buyers and sellers facing a more uncertain economic backdrop this year.
Affordability continues to be a challenge for many would-be buyers, and mortgage rates have edged higher again after easing earlier in the summer. Lloyds expects market activity and house prices to remain relatively stable over the remainder of the year.
Industry commentary included in the report notes that affordability challenges have affected both existing homeowners and first-time buyers. Lower mortgage applications and reduced lending over the previous quarter are likely to continue influencing market activity in the coming months. The report also points to regional differences, with Northern Ireland outperforming other areas, while London and the South East continue to lag behind.
For letting agents and inventory clerks, the current market stability and regional variations may impact rental demand and property turnover. The emphasis on accurate pricing is highlighted, as properties launched at realistic values continue to attract interest, while overpriced homes may require reductions and spend longer on the market.
Source: The Negotiator