Map reveals where house prices could rise this year, according to UK's biggest mortgage lender
07/05/2024 05:57 AM
HOUSE prices fell by 0.2% in June, according to the UK’s biggest mortgage lender.
House prices fell by 0.2% month-on-month or just under £500 in cash terms in June, Halifax said.
The average UK house price in June was £288,455, edging down from £288,931 in May.
It means the average UK house price remained relatively flat,
But property values are likely to rise modestly through this year and into 2025, the lender said.
Meanwhile, the annual rate of house price growth stood at 1.6%, and on an annual basis house prices have increased for seven months in a row.
Amanda Bryden, head of mortgages, Halifax, said: “This continued stability in house prices – rising by just 0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering.
"For now it's the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices.
"Mortgage affordability is still the biggest challenge facing both home buyers and those coming to the end of fixed-term deals.
She added that this could ease gradually, particularly if The Bank of England (BoE) pushes ahead with an interest rate cut in August.
Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges, particularly for first-time buyers.
In some signs of relief for borrowers, lenders including Halifax, HSBC UK, Barclays, Santander, NatWest and Yorkshire Building Society have been chopping their mortgage rates this week.
Some 1.6 million mortgages are coming off fixed rates this year, according to UK Finance.
But Labour's General Election landslide could deliver a confidence boost to the housing market, some experts have said.
Alice Haine, personal finance analyst at Bestinvest said: "A stable political environment can potentially deliver a confidence boost to the housing market, particularly one that has struggled over the past year with high borrowing costs and a dearth of available and affordable stock.
"Buying a first home, upsizing and even downsizing are all major personal finance decisions, which is why confidence in how your country is run is vitally important.
"Interest rates have remained at a 16-year high of 5.25% for almost a year causing major affordability challenges for first-time buyers and those looking to move to larger homes.
Meanwhile, Nicky Stevenson, managing director at estate agent group Fine and Country added: “While the property market has had to contend with elevated interest rates and political uncertainty, it has held firm and is expected to see further buoyancy following the General Election.
"Annual house price forecasts reflect a more positive outlook than they did in the beginning of the year, helped by headline inflation reaching its target 2%.”
The BoE uses the base rate as a lever to control spending, with higher rates intended to dampen demand and spending, which in turn drives down inflation.
Here are the average house prices across the UK and the annual increases, according to Halifax:
- East Midlands, £238,055, – 0.4%
- Eastern England, £329,853, -0.8%
- Greater London, 536,821, 0.2%
- North Eas,t 172,449, 1.9%
- North Wes,t 232,258, 3.8%
- Northern Ireland, 191,767, 3.2%
- Scotland, 204,952, 1.9%
- South East, 384,871, -0.2%
- South West, 302,021, 0.4%
- Wales, 219,483, 0.7%
- West Midlands, 252,745, 0.8%
- Yorkshire and Humber, 206,351, 0.9%
Who tracks house prices?
There are several different house price trackers, all of which measure something slightly different.
The official measure comes from the Office for National Statistics, which examines the prices homes have actually sold for after they are registered on the Land Register.
This is the most accurate of all the indices, but the figures come out three months after the homes are sold, so there’s a big time lag.
Nationwide, Rightmove, Halifax, and Zoopla all publish a monthly index tracking the average prices of homes on which they provide mortgages.
While they do adjust their figures to iron out big outliers, both lenders measure average house prices based on the properties they see.
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