UK house prices remain flat amid slow annual growth

UK house prices remained flat in July, according to the latest Lloyds house price index. The average property price stood at £299,253, showing no change from June and an annual increase of only 0.1%. This represents the slowest annual growth rate since November 2023.

While the broader market remains stable, Northern Ireland recorded the strongest annual rise at 7.4%. Industry experts note that while demand remains steady, the market is highly sensitive to mortgage rates and borrowing costs. Despite a recent uptick in mortgage approvals, they remain 10% lower than the previous year.

Analysts suggest that while wage growth and easing inflation may support buyer confidence, affordability remains a significant challenge for both first-time buyers and existing homeowners. The market has moved within a narrow price range for nearly two years, reflecting a period of relative stability amidst broader economic and geopolitical uncertainty.