Data from the Office of National Statistics has shown that UK house prices rose by an average of 2.2% to £290,000 in the year to July, which is £6,000 higher than 12 months ago.
The latest report from the ONS also reveals that the annual growth rate is down 27% in the 12 months to June 2024.
Average house prices in England rose 1.6% to £306,000, were up by 2.0% in Wales to £218,000, and in Scotland lifted 6.0% to £199,000, over the year to July.
Meanwhile, UK inflation remained at 2.2% in August, which extinguishes any remaining hope of a base rate cut tomorrow.
The Bank of England lowered the interest rate from 5.25% to 5% at the start of August, after 14 consecutive increases.
The Monetary Policy Committee had stated that they expect inflation to increase to around 2.75% in the second half of 2024.
Commenting on the house pricing data, Atom bank head of mortgages Richard Harrison said: “There is clear momentum building in the housing market currently. The first base rate cut in four years has helped spark activity and a bit of competition among lenders, bringing back prospective buyers who might have put deals on hold.”
“Lower mortgage rates are undoubtedly playing a part here, and while another base rate cut this week looks unlikely, the markets seem to expect another cut before the end of the year, spelling more good news for potential buyers. Moneyfacts data shows that average interest rates for two- and five-year fixed rates have fallen for two straight months, a trend that borrowers will hope to see continue.”
Propertymark chief executive officer Nathan Emerson said: “It is reassuring to see further progress within the housing market as we continue to witness a consistent trend of growth as the year plays out. Overall, 2024 has proven to be transformative for the housing market with it facing a myriad of challenges at the start of the year and gathering pace to a far more upbeat performance as demonstrated by these latest figures.”
“Propertymark remains keen to see the UK Government kick start their house building programme to alleviate current pressures on housing demand and there is also a massive interest from those who aspire to buy to see and understand what support may be offered to boost their ability to get a footing on the housing ladder.
