UK house prices rose by 0.8% in July, and ongoing reductions in mortgage rates are likely to support continued growth throughout the rest of the year, according to Halifax.
The average house price in the UK in July was £291,268, up from £289,042 in June. This increase follows three months of minimal growth, with price rises ranging from 0.1% to 0.2%.
The annual growth rate climbed to 2.3%, the highest it has been since January this year.
Amanda Bryden, head of mortgages at Halifax, noted that the recent Bank of England base rate cut and the reduction in mortgage rates from major lenders were positive developments for prospective homebuyers.
She said: “With lower mortgage rates and the potential for further base rate reductions, we expect house prices to continue a modest upward trend throughout the rest of this year.”
Last week, the Bank of England reduced interest rates from 5.25% to 5%, marking the first cut in four and a half years. However, the Bank cautioned that savers should not expect more substantial cuts soon as it works to keep inflation in check.
