UK House Prices Stagnate Amid Rising Mortgage Rates

UK house prices have stagnated in July, according to new figures from Lloyds. The average property value in the UK was £299,253 last month, with no growth compared to June.

This marks a slowdown from the 0.2% growth seen in June and is also the weakest annual increase since November 2023, at 0.1%. Northern Ireland saw the strongest growth in prices across the UK, with a 7.4% year-on-year increase for July at £231,131.

Amanda Bryden, head of mortgages at Lloyds, stated that 'the UK housing market remained steady' in July and that average house prices have been stable within a narrow range over the past two years. However, she also noted that affordability remains a challenge for many potential buyers, with mortgage rates having edged higher due to recent global economic uncertainty.

The Bank of England's decision to hold interest rates at 3.75% has been accompanied by warnings that inflation is set to rise by the end of the year due to the ongoing conflict in the Middle East. This development has contributed to lenders hiking their mortgage rates, despite the base rate remaining unchanged.