UK House Prices Rise 0.6% in July Amid Market Recovery

The UK housing market showed signs of recovery in July following a dip in June caused by the end of a temporary stamp duty holiday in April. Nationwide reported a 0.6% monthly increase in average house prices to £272,664 and an annual growth rate increase to 2.4%, with mortgage approvals holding steady at pre-pandemic levels. Despite borrowing costs remaining elevated, mortgage rates have improved from late 2023 highs, and affordability ratios are at their best in over a decade, easing deposit constraints for buyers. Home sales surged 13% month-on-month in June, signaling renewed buyer confidence and increased vendor activity, supported by expectations of upcoming interest rate cuts by the Bank of England. Industry experts noted that longer mortgage terms and lower anticipated rates are encouraging market momentum despite broader economic uncertainties. Overall, the housing market’s resilience is underpinned by stable employment, rising earnings, and positive buyer sentiment.