UK house prices push higher for fifth month in a row

UK house prices rose for the fifth successive month in July, official data showed on Wednesday, as the market continued to bounce back.

According to the latest UK House Price Index from HM Land Registry, average house prices rose 0.6% since June. Year-on-year, they rose 2.2%, although that was down on a revised estimate for growth of 2.7% in the 12 months to June.

As a result, the average property in the UK now costs £289,000.

London was one of only two regions in England that did not record a monthly rise and the only to show a year-on-year fall. Prices dipped 0.3% month-on-month and by 0.4% annually, to £521,000.

In Yorkshire and the Humber, they fell 0.5% on June but jumped 3.7% on an annual basis.

The UK housing market has came under severe strain in recent years, hit by a shortage of properties coming to market, surging inflation, the cost of living crisis and record interest rates.

It was then rocked further by former prime minister Liz Truss’s disastrous mini budget in 2022, which sent mortgage rates soaring.

However, this year has seen mortgage rates start to ease, while improving economic conditions - most notably falling inflation and a quarter point cut in interest rates - bolstered confidence.

The BoE is due to announce its next decision on interest rates on Thursday.

It trimmed the rate to 5% in August, but few analysts expect another cut this month, particularly after inflation data released earlier on Wednesday showed the consumer price index was unchanged at 2.2%.

The UK HPI, which was previously published by the Office for National Statistics, is compiled using data from HM Land Registry, Registers of Scotland, Land & Property Services/Northern Ireland Statistics and Research Agency, and the Valuation Office Agency.