Now Reading: UK house prices flat in July as mortgage rates rise again
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UK house prices flat in July as mortgage rates rise again
Britain's housing market lost momentum in July, with house prices unchanged from June as higher mortgage rates and the Iran war weighed on demand, Lloyds Bank reported. The average property price stood…
The Story in Brief
Britain's housing market lost momentum in July, with house prices unchanged from June as higher mortgage rates and the Iran war weighed on demand, Lloyds Bank reported. The average property price stood at £299,253, down £143 from a month earlier. Annual price growth slowed to just 0.1%, the weakest since November 2023, from 0.7% in June. Mortgage rates have edged up again after easing earlier in the summer, with the average two-year fixed rate at 5.63% and five-year at 5.67%, both above 5%.
Regional divergence widened: Northern Ireland saw the strongest annual growth (7.4%) while the south-east and London recorded annual price falls of 2% and 1.3% respectively. Lloyds expects activity and prices to remain stable for the rest of the year, though the outlook depends on mortgage rates, inflation and household confidence.
The Indian Opinion
Some may read this as a sign that Britain's economy is cracking, or that the Middle East conflict is wrecking the housing market. But the data shows a more ordinary story: the market is simply adjusting to higher borrowing costs after a strong start to 2026. The north-south gap is as much about supply mismatches as about rates. The real test will be whether annual price growth turns negative in the coming months, which would signal a deeper slowdown than just a pause.
Source: timesofindia.indiatimes.com
This story was synthesised by AI from the source linked above.
