House prices across the UK climbed by 0.4% in July, marking the strongest monthly increase since the start of the year, according to the latest data from Halifax.

The average property price now stands at £298,237, up from £297,157 in June.

– Advertisement –

Despite the positive monthly growth, the annual rate of price increases has slowed slightly to 2.4%, down from 2.7% recorded in June. This suggests the housing market may be finding a more sustainable pace after recent volatility.

Northern Ireland Dominates Regional Growth

Northern Ireland continues to outpace all other UK regions with remarkable annual house price growth of 9.3%. The typical home in the province now costs £214,832, representing exceptional value compared to other parts of the UK.

Scotland also delivered a strong performance with prices rising 4.7% annually, bringing the average property value to £215,238. Wales saw more modest but steady growth of 2.7%, with homes now averaging £227,928.

English Regions Show Mixed Performance

Among English regions, the North West and Yorkshire & the Humber are leading the charge with 4.0% annual growth. Average prices in these areas have reached £242,293 and £215,532, respectively.

The picture is different in the traditionally expensive southern regions. The South West, London, and the South East are experiencing much cooler growth rates of just 0.2% to 0.5%.

London remains the UK’s most expensive property market by a significant margin, with average prices now hitting £539,914. This represents more than double the national average.

Market Outlook

The July figures suggest the UK housing market is still managing to overcome concerns around the economy. The regional variations reveal a complex picture where traditionally affordable areas are seeing the strongest growth, potentially offering better investment opportunities for buyers and investors.

“Challenges remain for those looking to move up or onto the property ladder. But with mortgage rates continuing to ease and wages still rising, the picture on affordability is gradually improving,” said Amanda Bryden, Head of Mortgages, Halifax.

“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.”

Upcoming interest rate decisions and job market data will likely drive prices going into the end of the year.