July saw further rise in UK house prices

August 8, 2022 by Brendan O'Neill

House Prices

The latest data shows that last month brought further year-on-year growth in average UK house prices, with the figure having gone up to 11% by the end of July.

This data is taken from the Nationwide House Price Index, and it shows a small rise in average price growth from the 10.7% growth recorded in June. The increase means that the average UK house price now stands at £271,209, with this representing growth of 0.1% compared with June. Although it shows price growth starting to taper off, it still leaves it at a level that is difficult for first-time buyers in particular.

It marks the 12th successive month in which the average price has gone up. In turn, that ensures that annual growth in house prices has remained at double digit levels for nine successive months. Halifax is stating that a continued lack of housing supply coupled with a healthy job market is helping prevent a price collapse, even in the wake of rising overall living costs.

According to Mortgage Strategy Robert Gardner, its chief economist stated that:

“While there are tentative signs of a slowdown in activity, with a dip in the number of mortgage approvals for house purchases in June, this has yet to feed through to price growth.”

Gardner added that this growth in prices was expected to come to an end over the next few quarters, as wider economic factors come into play.

The situation leaves advisors with CeMAP training looking at specialist loans for their first-time buyer clients.