Annual growth in UK house prices quickened last month, according to data from mortgage lender Halifax. The growth rate increased to 2.3% in July, up from 1.6% in June, marking the highest annual growth rate since January. House prices rose by 0.8% in July compared to the previous month, reversing a 0.2% decline in June. This monthly rise exceeded the forecasted 0.3% increase. The average UK house price in July was £291,268, up from £289,042 in June. Northern Ireland continues to show the strongest annual house price growth in the UK.

Amanda Bryden, Halifax’s Head of Mortgages, highlighted the positive impact of the recent Bank of England Base Rate cut and reductions in mortgage rates. These changes are encouraging for those looking to remortgage, purchase their first home, or move up the housing ladder. However, Bryden noted that affordability constraints and the lack of available properties remain significant challenges for prospective homeowners. Despite these challenges, Halifax anticipates a modest upward trend in house prices for the rest of the year, driven by lower mortgage rates and potential further Base Rate reductions.