Data published by Halifax and Bank of Scotland showed that the house price index rose 0.8% m/m in July after remaining unchanged in June (revised from -0.2%). It was the strongest increase since January. Economists had expected a 0.3% increase. On an annual basis, house price growth accelerated to 2.3% (the highest rate since the start of this year) from 1.9% in June (revised from +1.6%). The average house price reached 291,268 pounds, up over 2,200 pounds compared to the previous month.
“Last week’s Bank of England’s rate cut, which follows recent reductions in mortgage rates, is encouraging for those looking to remortgage, purchase a first home or move along the housing ladder. However, affordability constraints and the lack of available properties continue to pose challenges for prospective homeowners. Against the backdrop of lower mortgage rates and potential further rate reductions, we anticipate house prices to continue a modest upward trend throughout the remainder of this year", - said Amanda Bryden, Head of Mortgages at Halifax.