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UK house prices broadly flat in July amid mortgage-rate pressure
Lloyds said the average property price was £299,253 in July, down £143 from June, while Greater London fell 1.3% year on year.
UK house prices were broadly stagnant in July as would be buyers were squeezed by higher mortgage rates, affordability constraints, and uncertainty tied to tensions in the Middle East, according to lender Lloyds, citing its monthly index.
The average UK property cost £299,253 in July, down £143 from June. Lloyds also said prices were only 0.1% higher than a year earlier, the weakest annual growth since November 2023.
In Greater London, house prices fell 1.3% year on year to an average of £533,930. Northern Ireland was the top performer, with prices up 7.4% year on year to an average of £231,131, while Scotland rose 3.6% to £223,246.
Lloyds linked the softer activity to expectations for inflation and interest rates, noting that Middle East tensions have stoked fears of renewed inflation pressure. The average two year fixed residential mortgage rate stood at 5.63% on Friday, and the average five year deal was 5.67%, Moneyfacts data showed, while Lloyds said it expects market activity and prices to remain relatively stable for the rest of the year.