House Prices Flatline as Mortgage Rates Edge Higher Amid Global Uncertainty

The UK housing market has reported stagnant house prices in July, according to new figures from Lloyds. The average property value was £299,253, which is a flatline compared to June's growth of 0.2%. This slowdown marks the weakest annual increase since November 2023, with house prices only 0.1% higher than last year.

Northern Ireland saw the strongest growth in prices across the UK, with a 7.4% year-on-year increase for July at £231,131. In contrast, prices are weakening in London, down 2%, and those in Greater London down 1.3%. The south east also experienced a decline of 2%.

Amanda Bryden, head of mortgages at Lloyds, described the UK housing market as 'steady' in July. She noted that average house prices have remained relatively stable for almost two years, moving within a narrow range over this period and sitting just 0.5% higher than they were in November 2024.

The recent increase in mortgage rates has been attributed to the global economic uncertainty caused by the Iran war. The Bank of England kept rates unchanged again last week but cautioned that inflation was set to rise by the end of the year due to the conflict and its effects on prices.