Average UK house price jumps by more than £1,000 month-on-month – Halifax

The average house price jumped by 0.4% or more than £1,000 in cash terms in July, Halifax has reported.

Across the UK, the average property value in July was £298,237, up from £297,157 in June.

Amanda Bryden, head of mortgages at Halifax, said: “UK house prices rose in July, up by 0.4% (£1,080 in cash terms), the biggest monthly increase since the start of this year.

“The average house price is now £298,237, 2.4% higher than a year ago.

“While the national average remains close to a record high, it’s worth remembering that prices vary widely across the country depending on a number of factors, not least location and property type.

“Challenges remain for those looking to move up or on to the property ladder.

“But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving.

“Combined with the more flexible affordability assessments now in place, the result is a housing market that continues to show resilience, with activity levels holding up well.

“We expect house prices to follow a steady path of modest gains through the rest of the year.”

Looking across the UK, Northern Ireland continued to be the strongest-performing area, with house prices typically rising by 9.3% annually, Halifax said.

In Scotland, property values rose by 4.7% and in Wales they increased by 2.7% on average.

In England, the North West and Yorkshire and the Humber recorded the strongest annual property price inflation, at 4.0%.

Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “Housing market activity is picking up, driven by increased listings, easing borrowing costs and a relaxation of mortgage lending rules.”

Thomas Lambert, a financial planner at wealth manager Quilter, said: “This improvement comes despite the lingering impact of stamp duty threshold changes earlier in the year, which have increased upfront costs for many buyers and us being deep into the summer lull.

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“While mortgage rates have drifted lower and affordability rules have been eased, many households are still constrained by high living costs and sluggish income growth.

“For first-time buyers, even small increases in rates or property prices can make the difference between buying and staying put.”

Nathan Emerson, chief executive of property professionals’ body Propertymark, said: “Lenders are adapting to market trends by offering more competitive products.”

Amy Reynolds, head of sales at London-based estate agency Antony Roberts, said: “While in our offices we experienced a brief lull in activity at the start of the school holidays, it has picked up significantly since then.

“Serious buyers are committing and keen to move before the end of the year.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “Mortgage rates continue to edge downwards but it’s not just pricing that is improving, with lenders also broadening policy, including increasing loan-to-income caps and lowering some income requirements, which is boosting affordability.”

Tom Bill, head of UK residential research at Knight Frank, said: “The UK housing market is getting back on its feet following the disruption of April’s stamp duty cliff edge, but high levels of supply are keeping prices in check.

“We expect low single-digit annual growth by the end of the year but that depends on the content of the autumn budget.

“Some parts of the economy are already adopting the brace position and buyers could begin to hesitate after the summer if speculation over tax rises persists.

“The conundrum for the housing market is that the Government needs to increase its financial headroom to keep borrowing costs in check but without sentiment-sapping tax hikes.”

Here are average house prices and the annual increase, according to Halifax (regional annual change figures are based on the most recent three months of approved mortgage transaction data):

East Midlands, £245,182, 2.4%

Eastern England, £334,494, 1.1%

London, £539,914, 0.5%

North East, £177,251, 3.2%

North West, £242,293, 4.0%

Northern Ireland, £214,832, 9.3%

Scotland, £215,238, 4.7%

South East, £388,260, 0.5%

South West, £302,306, 0.2%

Wales, £227,928, 2.7%

West Midlands, £260,265, 2.6%

Yorkshire and the Humber, £215,532, 4.0%