UK house prices miss spring recovery…

UK house prices miss spring recovery…
UK house prices miss spring recovery…

Data from Halifax shows a lack of supply and affordable mortgages remain a challenge for buyers as average house prices fell slightly month-on-month in June.

The latest Halifax House Price Index shows annual price growth has increased for the seventh consecutive month, but average monthly values ​​fell by 0.2%.
This follows two months of flat growth and suggests the market has failed to benefit from its usual spring rebound.

The average home in the UK now costs £288,455 – a decrease of 0.2% between May and June and an increase of 1.6% year-on-year.

According to Halifax, Northern Ireland saw the strongest house price growth of any country or region in the UK. In June, house prices rose by 4.0% year-on-year, up from 3.3% the previous month.

The average price of a home in the country now stands at £192,457.

In England, the highest house price inflation was recorded in the North West, with a rise of 3.8% over the year, with house prices now standing at £231,351.

The East of England was the only region or nation in the UK to record an annual decline in house prices, where they now average £328,747, down 0.9% in June year-on-year. London continues to have the most expensive house prices in the UK, now averaging £536,306, up 0.9% on last year.

Amanda Bryden, head of mortgages for Halifax, said: “This continued stability in house prices – up just +0.4% so far this year – reflects a market that remains subdued, although overall activity is recovering. For now, it is the shortage of available properties, rather than buyer demand, that continues to support higher prices.

“Mortgage affordability remains the biggest challenge for both homebuyers and those coming to the end of their fixed-term contracts. This issue is likely to be gradually eased by a combination of lower interest rates, rising incomes and more subdued house price growth.

“While the housing market is delicately balanced in the near term and sensitive to the pace of change in interest rates, based on our current expectations, house prices are likely to rise modestly for the remainder of this year and into 2025.”

Tom Bill, head of UK housing research at Knight Frank, commented on the index: “Stubbornly high mortgage rates and general election uncertainty mean the UK housing market has not seen a particularly strong seasonal upturn this spring.

“We expect trading volumes to pick up from the autumn as a rate cut becomes imminent and relative calm returns to Westminster. A Labour victory will have little impact on what happens to the property market in 2024 and our forecast of an average UK rise of 3% remains unchanged.”

Nathan Emerson, chief executive of trade body Propertymark, added: “The announcement of the general election last month may have slowed movement in the housing market, but now that we know we have a new government with an overall working majority, Propertymark remains optimistic that house prices will start to rise in the summer months, which is naturally a busy time for the housing market.

“It would be good if the new UK government could make its housing policy clear in advance, and a rumour that the Bank of England would cut interest rates in August would hopefully restore substantial confidence in the housing sector.”