In June, UK house prices showed stability, as reported by the Halifax. This marks the third consecutive month without significant fluctuations in the market. The slight monthly decrease amounted to less than £500 in cash terms, reflecting a marginal adjustment in property values amid ongoing market conditions.
On an annual basis, however, the trend continues to show resilience in the housing sector. Year-on-year, house prices have maintained growth for seven consecutive months. This sustained increase underscores the robust demand and market dynamics influencing property values across the UK. Currently, the average property value stands at £288,455, reflecting ongoing stability in the market’s long-term outlook.
The data released by the Halifax indicates a nuanced picture of the UK housing market. While monthly figures suggest minimal adjustments, the broader trend remains one of gradual growth in property values. This stability amidst economic uncertainties highlights the resilience of the housing sector, offering insights into the evolving landscape for homeowners and prospective buyers alike.
Amanda Bryan, head of mortgages at Halifax, points out that house prices have maintained stability for the year, with a marginal increase of only +0.4% thus far. This stability indicates a subdued market environment, despite signs of overall recovery in activity. The persistent shortage of available properties continues to be the primary driver behind the sustained higher prices observed.
She emphasizes that mortgage affordability remains a significant hurdle for both prospective homebuyers and those approaching the end of their fixed-term mortgage deals. The challenge is expected to gradually ease, aided by anticipated reductions in interest rates, alongside income growth and a more tempered rise in property prices.
Bryan underscores the ongoing impact of market dynamics, where constrained supply rather than heightened demand continues to exert upward pressure on house prices. This trend underscores the delicate balance in the property market, where affordability concerns must be addressed alongside ensuring sustainable growth and stability.
Looking ahead, she suggests that the trajectory of house prices will depend largely on how these factors evolve over the coming months. As economic conditions and policy measures unfold, adjustments in mortgage affordability and housing supply dynamics will play crucial roles in shaping the future landscape of the property market.
“Looking ahead, the housing market appears to be delicately balanced and particularly responsive to shifts in the Base Rate. Based on our current outlook, we anticipate that property prices will experience gradual upward movement throughout the remainder of 2024 and into 2025.”
Halifax’s latest data not only highlights national trends but also provides detailed regional insights. Northern Ireland has emerged as the leader in annual property price growth across the UK, registering a robust increase of +4.0% in June, up from +3.3% the previous month. The average property price in Northern Ireland now stands at £192,457.
In England, the North West has shown the most pronounced rate of house price inflation, with prices climbing by +3.8% over the past year to reach an average of £231,351. This regional variation underscores the diverse dynamics at play within the UK property market amidst broader economic conditions.
In Scotland, house prices saw an annual increase, with the average property now priced at £204,663, marking a rise of +1.6% from the previous year. Meanwhile, in Wales, house prices also showed growth, climbing by +2.7% annually to reach £220,197.
However, Eastern England experienced a decline in house prices over the past year, with properties now averaging £328,747, reflecting a decrease of -0.9% in June compared to the previous year.
London maintains its position with the highest property prices across the UK, averaging £536,306, which represents a modest increase of +0.9% compared to last year’s figures.
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