Halifax reports average property value rose by £1,080 in July. Mortgage holders may benefit from easing rates and increased listings. UK house prices recorded their strongest monthly growth since the beginning of the year, according to Halifax. A 0.4% increase in July pushed the average home value to £298,237, up from £297,157 in June.
The rise comes amid a broader improvement in mortgage affordability and a cautious recovery in market confidence. With mortgage rates gradually easing and flexible lending conditions in place, activity levels have shown resilience despite recent fiscal pressures.
Monthly Price Increase Marks Highest Growth Since January
House prices in the UK rose by £1,080 in July, marking a 0.4% increase, according to the latest figures released by Halifax. This is the largest monthly gain of 2025 so far and follows a subdued period in May and June, when the market was affected by April’s rise in Stamp Duty Land Tax.
The annual rate of growth now stands at 2.4%, down from 2.7% in June, with Northern Ireland continuing to show the strongest regional performance. While the national average remains close to a record high, Halifax noted that prices still vary significantly depending on property type and location.
Amanda Bryden, Head of Mortgages at Halifax, commented: “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.” She added that flexible affordability assessments are helping maintain market resilience.
Easing Rates and Rising Supply Support Homebuyer Demand
The uptick in prices coincides with rising housing stock levels and a relaxation of mortgage lending rules, according to Bestinvest by Evelyn Partners. Alice Haine, a personal finance analyst, attributed the renewed activity to buyer confidence, encouraged by expectations of a further Bank of England interest rate cut.
While inflation rose to 3.6% in the 12 months to June, the Monetary Policy Committee has hinted at a delicate balancing act between curbing inflation and supporting household demand. A potential quarter-point rate cut, if announced, would be the fifth since August 2024 and could improve affordability for new and existing borrowers.
Some mortgage holders, particularly those with tracker deals or short-term fixed rates, may already see lower repayments. However, borrowers exiting ultra-low fixed-rate deals from the post-pandemic period are still facing higher monthly costs.
Haine advised prospective buyers to consult independent brokers and consider product switches, which can be fixed up to six months in advance. She also noted that realistic pricing will be key for sellers hoping to secure a timely sale, especially as more second homeowners and landlords list properties to avoid rising tax liabilities.
