House prices rose again last month – but buyers in certain regions are bagging bargains.

The Halifax House Price Index has revealed that UK house prices increased by a solid +0.8% in July, bringing an end to three months of stagnation. This means the average house price in the UK now stands at £291,268 – that’s a jump of over £2,200 compared to June!

Annual growth is also looking healthy at +2.3%, its highest point since January.

Could the Bank of England’s recent interest rate cut be the reason behind this surge?

Amanda Bryden, Head of Mortgages at Halifax, seems to think so. “Last week’s Bank of England’s Base Rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder,” she explained.

However, she also highlighted the challenges still facing hopeful homebuyers: “Affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners.”

What does this mean for the rest of the year?

Halifax predicts that house prices will continue their upward trajectory for the remainder of 2024, albeit at a “modest” pace.

Northern Ireland Steals the Show with Highest House Price Growth in the UK

While house prices rose across most of the UK, Northern Ireland emerged as the clear winner, boasting an impressive annual growth rate of +5.8%. This marks the highest increase for the nation since February 2023, bringing the average property price to £195,681.

The North West of England also experienced a healthy climb, with prices rising by +4.1% to reach an average of £232,489. Meanwhile, Wales witnessed a +3.4% increase, taking the average house price to £221,102 – its highest point since October 2022.

In Scotland, the average property price now stands at £205,264, a respectable +2.1% higher than the previous year.

Eastern England Bucks the Trend with Slight Dip in House Prices

While most regions enjoyed a surge in property values, Eastern England went against the grain, experiencing a minor -0.4% dip, bringing the average house price down to £330,282.

As always, London maintained its status as the most expensive place to buy property in the UK, with the average price now £536,052, a +1.2% increase compared to the previous year.

But is the housing market as active as it seems?

Despite the positive figures, data reveals a slightly different story:

• Fewer homes are being sold: UK home sales dipped in June 2024 compared to the previous month, with transactions down by -0.6%, according to HMRC.
• Mortgage approvals also fell: The number of mortgages approved for house purchases decreased slightly by -0.3% in June 2024, reports the Bank of England.
• The market remains “subdued”: The Royal Institution of Chartered Surveyors (RICS) reports a decline in new buyer enquiries and agreed sales, suggesting a cooling in market activity.

So, while rising house prices might seem like good news for sellers, it’s clear that the market is still grappling with challenges, including affordability concerns and a shortage of available properties.