UK House Prices Flatline as Mortgage Rates Rise Amid Global Uncertainty

UK house prices have flatlined in July as mortgage rates rise amid global economic uncertainty. According to the Lloyds house price index, property values showed no growth compared to June, down from a 0.2% increase that month.

The average UK property value in July was £299,253, which is only 0.1% higher than it was this time last year - the weakest annual increase since November 2023.

However, Northern Ireland saw the strongest growth in prices across the UK, with a 7.4% year-on-year increase for July at an average price of £231,131. Scotland and Wales also reported increases, with 3.6% and 1.6% respectively.

In contrast, prices in the south east were down 2% and those in Greater London decreased by 1.3%. Amanda Bryden, head of mortgages at Lloyds, said the UK housing market 'remained steady' in July and predicted that market activity and house prices will remain stable over the remainder of the year.

The Bank of England has kept interest rates unchanged at 3.75% but warned that inflation is set to rise due to the conflict in the Middle East, which may lead to further mortgage rate hikes if prolonged.