Annual UK house price growth slowed to 0.1% in July, marking its weakest rate since November 2023. The Lloyds House Price Index reported that property values were broadly unchanged during the month.
The average property price in July was £299,253, a slight decrease of £143 from £299,396 in June. Anthony Codling of RBC Capital Markets described the market as "barely breathing," with prices neither falling sharply nor rising with conviction.
Industry experts attribute the subdued market to stretched affordability and mortgage rates. Geopolitical events in the Middle East have reportedly influenced lenders to increase rates, impacting buyer appetite. Transaction volumes remain below levels seen a year ago.
Karen Noye, a mortgage expert at Quilter, noted that the housing market is increasingly affected by events beyond the UK, including geopolitical tensions and shifting interest rate expectations. Despite underlying demand for homeownership, affordability remains a significant challenge.