UK House Prices Flat in July as North West Records 2.1% Annual Growth
Higher mortgage rates are continuing to constrain buyers, although property values in the North West are still rising faster than the UK average.
By The Guardian
UK house prices were broadly unchanged in July as higher mortgage rates and continued affordability pressures limited activity in the property market.
The latest Lloyds house price index put the average UK property at £299,253, down by just £143 compared with June. Prices were only 0.1% higher than a year earlier, representing the weakest annual growth since November 2023.
The figures suggest the housing market remains relatively stable rather than experiencing either a significant downturn or a strong recovery.
Amanda Bryden, Head of Mortgages at Lloyds, said affordability continued to be a major challenge for prospective buyers, particularly after mortgage rates moved higher again following renewed uncertainty in the Middle East.
Changes in borrowing costs remain one of the main factors influencing demand. Even relatively small increases in mortgage rates can significantly affect monthly repayments, particularly for first-time buyers and households borrowing at higher loan-to-value ratios.
There were also substantial differences between regions.
Northern Ireland recorded the strongest annual growth, with average prices rising by 7.4% to £231,131. Scotland and Wales also recorded annual increases, while northern regions of England continued to perform more strongly than much of the south.
For Cheshire buyers and homeowners, the North West figures are particularly relevant. Average prices across the region increased by 2.1% compared with a year earlier, significantly ahead of the 0.1% UK average.
The North East recorded annual growth of 2.8%, with an average property price of £182,488.
By contrast, prices fell across several southern markets. The South East recorded a 2% annual decline to £381,146, while Greater London fell by 1.3% to an average of £533,930.
The regional figures highlight an increasingly varied housing market, with affordability helping support demand in parts of northern England while higher property values continue to weigh on buyers in London and the South East.
For homeowners considering a move, relatively stable prices may provide greater certainty than the sharp increases seen during parts of the pandemic-era housing boom. Buyers, however, continue to face the challenge of balancing property prices with higher borrowing costs and deposit requirements.
Lloyds expects both house prices and market activity to remain broadly stable for the rest of 2026, with the outlook likely to depend heavily on inflation, mortgage rates and wider household confidence.