UK house prices flat in July, says Lloyds, as buyers struggle with affordability

UK house prices remained stagnant in July, according to figures released by Lloyds bank. The average property cost £299,253, a decrease of £143 compared to the previous month. Lloyds' head of mortgages, Amanda Bryden, noted that prospective buyers were struggling with affordability, particularly due to rising mortgage rates resulting from recent tensions in the Middle East.

Despite steady demand, market activity continued to fluctuate in response to changes in mortgage rates. Experts predict that market activity and house prices will remain relatively stable throughout the remainder of the year, influenced by the outlook for inflation and household confidence. Anthony Codling, an analyst at RBC Capital Markets, described the situation as one of "suspended animation," with prices neither falling sharply nor rising with conviction, trapped in a narrow range by stretched affordability and high mortgage rates.

Northern Ireland saw the strongest growth, with a 7.4% increase, bringing the average price to £231,131. Scotland followed with a 3.6% rise, reaching an average of £223,246. Wales experienced a 1.6% increase, with the average price at £231,458. England's north reported the strongest growth at 2.8%, averaging £182,488, while prices in the north-west increased by 2.1%, reaching £247,836.

In contrast, the south-east saw a 2% decline, with the average price falling to £381,146, and Greater London experienced a 1.3% decrease, dropping to £533,930.